Universal Telephone Service Preservation Act of 1983

Universal Telephone Service Preservation Act of 1983 - Amends the Communications Act of 1934 to define "lifeline telephone service" as telephone exchange service: (1) which provides residential customers a minimum level of telephone service, as determined by a State commission; and (2) for which the charges are substantially lower than the next highest level of service. Requires a telephone company to offer lifeline telephone service in order to participate in the access service system established by this Act, except that waivers may be granted.

Directs the Federal Communications Commission to provide for a system of requirements and procedures governing the compensation for any access service provided by any telephone company. Requires such system to be designed to promote: (1) universal telephone exchange service as well as universal telephone toll service; and (2) adequate and efficient communications services and facilities. Requires any telephone company to file a tariff for any access service offered by the company. Requires each tariff to identify the portion of the charges for access service to be recovered from: (1) the telephone exchange service subscribers of the telephone company; and (2) the interstate carrier or indirect user involved. Limits for any residential line the charge to be recovered from each exchange service subscriber as a charge for access service not based on usage to: (1) one dollar per month for 1984; and (2) during any year following 1984, a monthly rate equal to one dollar plus the monthly rate applicable at the close of the preceding year.

Directs the Commission to provide for a Universal Service Fund from which amounts will be distributed to telephone companies having excessive non-traffic-sensitive costs in order to reduce the costs of providing telephone service. Provides that in any case in which the non-traffic-sensitive costs of any telephone company for any calendar year exceed 115 percent of the national average of the non-traffic-sensitive costs of telephone companies for that year, the amount to be distributed from the Fund to such company shall be equal to: (1) 75 percent of the amount by which such non-traffic-sensitive costs of such carriers exceed 115 percent (but do not exceed 200 percent) of the national average; and (2) 100 percent of the amount by which such non-traffic-sensitive costs of such carrier exceed 200 percent of such national average. Provides that the Fund shall consist of contributions to be made by interstate carriers and indirect users. Directs the Commission to establish practices to determine amounts to be contributed to the Fund.

Directs the Commission to establish a program to monitor the availability of and rates for telephone exchange and toll service. Directs the Commission to submit reports to Congress on the results of such program.

Authorizes the Commission to provide for exemptions from all or parts of title II of the Communications Act, if the Commission determines that an adequate level of competition exists.

Prohibits, until July 1, 1985, the Commission from modifying the methods used for depreciation under title II of such Act, if such modification would increase the rates charged for any telephone exchange service and charges for access service.