I need somebody who can tranlate the text of the law into something mortals can understand: - where does the $ to support universal services come from? - what's the allowable limit within the law that we can spend it on? Without these constraints properly defined, we're going to talk ourselves in circles for a long time. > SCOPE. What services should be covered by the Universal > Service subsidies? The law uses the term 'evolved set' clearly indicating that the list changes over time. The 'telecommunications industry' definition is very broad ... would include computer companies, ISPs, CATV, VSAT, etc ... much more than just the telcos. But it appears that the fund gozintas come only from the 'telecommunications carriers'. I didn't find the exact definition, other than a reference to interstate commerce. But it appears that this input to the 'Fund' is from a quite limited subset of the telecommunications industry. Since the law also explicitly bans cross subsidization, it would appear that the a scheme that would use the inputs from the telecommunications carriers to fund a broader array of services (to wit, Internet services) would be in conflict. As an example, use of the Universal Service Fund to pay for VSAT connectivity (which is provided by a non-regulated vendor within the definition of telecomm industry but outside the definition of telecom carrier) would not be supportable. Rex Buddenberg