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The USF is charged to providers. Providers can seek to recover some of that through a USF line item on the bill, but that's just optical cover. The actual burden of the tax is split between the provider and customer according to the relative elasticity of supply versus demand: https://www.investopedia.com/terms/t/tax_incidence.asp. (While I'm not aware of a specific study on the issue, telecom service subject to the USF has low elasticity both on the supply side and demand side, so it's probably a reasonable assumption that AT&T is bearing a big chunk of the tax incidence.)

As to broadband subsidies: prior to 2011, the universal service fund only covered subsidies for broadband to schools and libraries, through the e-rate program. It wasn't until 2011 that the USF started subsidizing broadband generally through the Connect America Fund.




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