1. + Universal Service Administrative Company Description: Created in 1997 as a non-profit subsidiary of the National Exchange carrier Association (NECA). USAC has four universal service support programs: High Cost and Low Income (Lifeline), Rural Health Care, and Schools and Libraries divisions. The three divisions that facilitate these programs are: The Finance Division, responsible for billing, collection, and disbursement of all funds for the programs; the Information Systems Division, which takes care of the overall operating support of the corporation; and the Internal Audit Division, which conducts audits of USAC, support programs, and program beneficiaries. There is also an External Relations Division that communicates with Stakeholders, including Congress, the FCC, the media and program participants. Funding: All Telecommunications Carriers that provide an international and interstate service make Universal Service contributions. The FCC calculates these contributions quarterly. Depending upon the demand for Universal Services, the FCC will determine how much telecommunications carriers will pay once they have reached a predetermined revenue threshold. The Telecom Act of 1996 requires telecommunications carriers, to pay these funds to the USAC. What these programs do: The High Cost program ensures that consumers across America can access affordable telecommunications services (i.e. basic phone). This program has disbursed over 4 billion dollars a year since 2009. The Low Income Program—recently renamed to just “Lifeline”—ensures that low-income consumers can start and maintain telecommunication services at affordable rates. There are three parts to this program: Lifeline, Link Up, and Toll Limitation Service (TLS). Lifeline reduces monthly charges for basic service. Link Up reduces the cost of starting new telephone service (i.e. beginning/activation fees). TLS allows consumers to subscribe to toll blocking or toll control at no cost. Disbursements for this program have been between 1 and 2 billion dollars per year since 2009 with approximately 8.4 million connections supported by the funds in 2009. Rural Health Care Program ensures that health care providers in rural areas have access to vital telephone and Internet services at rates comparable to their urban counterparts. This program supports HCP’s efforts to embrace electronic communications. From 2009-2013, this program disbursed between 60 and 106 million dollars. Schools and Libraries Program, AKA E-Rate, helps schools and libraries obtain telecommuncations, internet access basic maintenance, and internal connections at affordable rates. From 2009 to 2013, roughly 1.8-2.2 billion dollars have been disbursed per year. Signs of Success: This program has survived since 1997 and is continuously making changes for improved efficiency. In America, it is estimated that there are about 279.8 million (or 86.75%) people who have access to and use the Internet—up by 7% from last year. That being said, more than 60% of the world is still offline. So there is quite a ways to go, even on home ground, but the continuation of this program, and the way that it is funded, may lead to the end of the Digital Divide. Analysis: It seems that the USAC is a well-rounded approach to the Digital Divide issue. Though not expressly mentioned, USAC does provide training and support. Their support really didn’t stand out compared to the purposes of their main programs and they way that they obtain funding. That being said, because of their lack of extraordinary support and trainings, the Intel Computer Clubhouse Network (ICCN), easily overtakes them, and may provide more meaningful results. The ICCN has built over 100 high-tech clubhouses across many countries, all geared towards providing a safe learning and closely mentored environment for children and young adults. With such permanent (as much as a program of this nature can have giving that it takes massive funding) and inclusive environments, the participants are truly learning what it takes to survive in our ever-expanding digital world. The ICCN could be an approach to complete the USAC, or vice versa—perhaps cooperation is in order? Disbursement funds from the High Cost Program

2. + Sources http://www.usac.org/about/about/universal-service/faqs.aspx http://www.usac.org/_res/documents/about/pdf/annual-reports/usac-annual-report- Interactive-Layout-2013.pdf http://www.usac.org/_res/documents/about/pdf/annual-reports/usac-annual-report- Interactive-Layout-2013.pdf http://www.fundsforlearning.com/docs/2010/04/usac-annual-report-2009.pdf http://www.internetlivestats.com/internet-users-by-country/ http://cs.stanford.edu/people/eroberts/cs201/projects/digital-divide/start.html http://www.intel.com/content/www/us/en/education/computer-clubhouse- network.html http://www.intel.com/content/www/us/en/education/computer-clubhouse- network.html http://www.intel.com/content/www/us/en/education/computer-clubhouse- network/results-and-impact.html http://www.intel.com/content/www/us/en/education/computer-clubhouse- network/results-and-impact.html http://www.mckinsey.com/Insights/High_Tech_Telecoms_Internet/Offline_and_falling_ behind_Barriers_to_Internet_adoption http://www.mckinsey.com/Insights/High_Tech_Telecoms_Internet/Offline_and_falling_ behind_Barriers_to_Internet_adoption