Utilities Division

Arizona Universal Service Fund - High Cost Fund

What is the Arizona Universal Service Fund (AUSF) - High Cost Fund?

The Arizona Universal Service Fund (AUSF) was established on September 22, 1989 in Decision No. 56639. The High Cost Fund is available to qualifying telecommunications carriers to help fund the costs of providing basic telephone service to customers in Arizona. Article 12 - Part A of the Arizona Administrative Code contains the rules that the Arizona Corporation Commission (ACC) uses to administer and implement the AUSF - High Cost Fund.

How can the AUSF - High Cost Fund help carriers and customers?

The High Cost Fund can help provide carriers with the funds they need to serve high cost and rural areas throughout Arizona. Customers in these areas can benefit if their carrier qualifies to receive funds from the High Cost Fund. Those customers would likely experience lower rates than they would have had if their carrier could not receive funds from the High Cost Fund.

How can a carrier receive funds from the AUSF - High Cost Fund?

Telecommunications carriers interested in applying to receive funds from the High Cost Fund would make a rate case filing with the ACC. The need for and the appropriate level of funding is determined in a rate case.

How is the AUSF - High Cost Fund funded?

One-half of the High Cost Fund funding requirement is collected through a surcharge paid by providers of basic local exchange service, wireless service, paging service and other Commercial Mobile Radio Service Providers that interconnect with the public switched network. These entities are known as Category One providers. The second half of the High Cost Fund funding requirement is collected from providers of intrastate toll service. These entities are known as Category Two providers.

2018 AUSF - High Cost Fund rates approved by Decision No. 75880

Category One providers:

• $0.016328 per access line
• $0.163280 per interconnecting trunk line

Category Two providers:

• 0.3418 percent of intrastate toll revenues

Solix, Inc. (Solix) administers the fund on behalf of the ACC including the annual revenue requirement and assessment rates, collections, and disbursements. If your company is required to begin collecting and remitting AUSF fees, please contact Michael Tamburino of Solix at (973) 581-6714 to obtain the correct forms.