Prohibits the Federal Communications Commission (FCC) from forbearing from requirements specified in the Communications Act of 1934 with respect to the designation of eligible telecommunications carriers (ETC) to receive support under the universal service support program. Directs the FCC, within 120 days, to suspend ETC designations received through forbearance of such requirements.
Requires an eligible ETC, in advertising the availability of services supported by federal universal service support mechanisms, to specify that the service charges are more than zero.
Requires that: (1) the amount collected to support such universal service each year be the same amount collected for FY2011, and (2) $500 million from such amount be transferred annually to the general fund of the Treasury and be unavailable for obligation or expenditure.
Directs the FCC to complete a rulemaking with respect to programs that provide universal service support to low income consumers (commonly known as the Lifeline and Link-up programs) to: (1) ensure that service is supported for only one telephone connection per household regardless of whether the telephone is provided through landline or commercial mobile service, (2) identify and prevent duplicate reimbursements, (3) require ETCs to implement a 60-day inactivity policy for commercial mobile services, and (4) guide the Universal Service Administrative Company on the recovery of improper payments.