AARP Hearing Center
Background
Telecommunications services, including phone and high-speed internet, are basic necessities. Affordable access to such services is critical to maintain independence and quality of life.
The federal Universal Service Fund subsidizes telecommunications and high-speed internet access services. It helps extend service to high-cost areas, consumers with low incomes, schools, libraries, and rural health care facilities. The fund is financed through a surcharge to telecommunications companies, which is passed onto consumers. Some states also have their own funds.
The federal Lifeline program provides discounts on eligible services to households with low incomes. These discounts apply to certain wireless, voice, and data bundles as well as fixed and mobile high-speed internet services. Some states supplement the Lifeline program, increasing the amount of the overall discount. As of the end of 2025, consumers with low incomes who subscribe only to voice service will not be eligible for the federal Lifeline discount.
AFFORDABILITY OF TELECOMMUNICATIONS SERVICES: Policy
AFFORDABILITY OF TELECOMMUNICATIONS SERVICES: Policy
Telecommunications Universal Service Fund
Policymakers should ensure that universal service funds are calculated fairly and distributed equitably.
Policymakers should ensure that only fully qualified providers capable of and committed to providing universal service receive support. Cost recovery should occur in a manner that is fair and equitable to all consumers, including those with low incomes.
The federal government should require fair and equitable universal service contributions from all telecommunications and high-speed internet service providers.
Federal policymakers should audit all service providers that receive public subsidies to deploy high-speed internet access infrastructure in high-cost areas, as well as providers that receive any other forms of universal service funding (such as through the Lifeline program).
Policymakers should ensure that public communications access points are available where needed for public health, safety, or welfare, such as Wi-Fi kiosks.
Telecommunications assistance
Policymakers should fully fund telecommunications assistance programs to ensure that all households can afford essential services. They should also strengthen outreach and education to increase awareness of and participation in programs.
Policymakers should streamline enrollment in telecommunications assistance programs, including through automatic enrollment.
Policymakers should ensure that funding for telecommunications assistance programs, including Lifeline, is preserved and funded in a competitively neutral manner so that all providers, regardless of the technology they use to provide services, contribute equitably.
The Federal Communication Commission and state public utility commissions should ensure that Lifeline customers can apply their Lifeline discount to any offering from an eligible telecommunications carrier that includes voice service.