Many countries are revisiting their definitions of “Universal Service” to keep expanding technologies aligned with national policies. In the U.S., the Telecommunications Act of 1996 defined universal service as an “evolving” concept, and directed the F.C.C. to pursue it for “advanced telecommunications services”. In China, in 2004, the Ministry of Information Industry (MII) announced the “Telephone Service in Each Village Project,” to connect 95% of all administrative villages by the end of 2005. Pressured by advancing technologies and important national and social goals, both the U.S. and China are debating “Universal Service Reform,” focused on the definition and goals of “Universal Service,” and the contribution and distribution universal service funds in the future. In the U.S., the goal is to update the definition of "Universal Service" to ensure appropriate incentives to accelerate the deployment of advanced communications and information services and technologies, including "broadband" Internet access, for all Americans, to promote innovation and global competitiveness. In China, while the “Telephone Service in Each Village Project” has been successful, many problems remain. Digital divides in China can be identified from two perspectives, I.e., the divide between the western, central and eastern regions, and the divide between urban and rural areas. There are many villages in the eastern regions that are much richer than cities in western regions, and there are many low-income people in big cities who can not afford to purchase telephone access. This leads to social imbalances and hinders development.
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