Universal Telephone Service Preservation Act of 1983 - Provides that, effective as of enactment of this Act, the decisions and orders of the Federal Communications Commission in C.C. docket numbered 78-72 shall cease to have effect.

Amends the Communications Act of 1934 to direct the Commission to establish a system of charges to compensate exchange common carriers for exchange access, and to reform the system of settlements and jurisdictional separation of property and expenses in force on the date of enactment. States that the purposes of such system of charges shall be: (1) to compensate exchange common carriers for all costs associated with providing or making available exchange access; (2) to achieve equitable treatment of all interexchange carriers and other persons who benefit from the services and facilities of each exchange common carrier, and to prevent contributions between exchange services or functions and interexchange services or functions of such carriers, except as provided below; (3) to ensure the continued universal availability of communications service provided by exchange common carriers at reasonable and affordable charges; (4) to assure that payments and assignments of costs relating to exchange access are carried out in a manner which ensures accountability and is open to public examination; and (5) to encourage efficient investment decisions and technological development. Requires the system to provide that an exchange common carrier shall file to the Commission a tariff for exchange access for each of its exchange areas. Authorizes a carrier to file, or the Commission or State Commission may require a carrier to file, a joint tariff for exchange access for all of its exchange areas within a single State until January 1, 1988, or later as the Commission may provide. Requires each tariff to specify separate charges for each type of exchange access on an element-by-element basis. Requires the charges for each type of tariff to be justified by costs. Requires each tariff to consist of four charges to be recovered from interexchange carriers. Provides that three of the charges shall encompass all costs associated with exchange access and one shall be the surcharge determined by the Universal Service Board (established by this Act). Requires the charges of each tariff which encompass all costs associated with exchange access to specifically identify the separate charges involved. Requires the system to provide that an exchange common carrier shall submit to the Commission a tariff for exchange access available from such carrier for interexchange carriers or other persons who indirectly interconnect with the facilities of such exchange carrier. Requires each tariff to include: (1) a charge for the direct costs of any services, facilities, or other factors required solely for the provision of such interconnection; (2) a charge reflecting an appropriate portion of the cost of services, facilities, and other factors which are used jointly or in common to provide exchange service and exchange access; (3) a charge reflecting the availability of the facilities of the exchange carrier for exchange access as an alternative for indirectly interconnecting interexchange carriers and interexchange customers to the extent such facilities are not used for exchange access by such carriers and customers; and (4) the surcharge determined by the Universal Service Board.

Requires any person who owns or operates facilities to originate or terminate interexchange communication other than through direct interconnection to notify the appropriate exchange carriers, the Commission, and the appropriate State Commissions. Imposes a $50,000 fine on any person who is required, but fails, to make such notification.

Directs the Commission, after consideration of recommendations of the Universal Service Board, to establish practices and methods to ascertain and fully apportion the cost of services, facilities, and other factors used jointly or in common to provide exchange services and exchange access.

Provides that the initial tariffs for exchange access shall take effect on July 1, 1985. Sets forth provisions governing the transitional period.

Establishes the Universal Service Fund, in order to assure the continued availability of universal transmission services, including service in rural or remote areas, at reasonable and affordable charges. Directs the Universal Service Board to annually determine uniform surcharges on the amounts collected by exchange common carriers under this Act, such that the Fund is sufficient to make required payments. Provides that an exchange common carrier is entitled to receive payments from the Fund if it certifies to the Universal Service Board that its average costs for nontraffic sensitive facilities per customer access line is in excess of 115 percent of the national average of such costs. Provides that the amount of such payments for an eligible exchange carrier shall be determined by the Universal Service Board.

Directs the Universal Service Board to establish and oversee an exchange access board (consisting of representatives of exchange common carriers, interexchange carriers, and other customers directly obtaining exchange access) to administer the accounts of the Universal Service Fund.

Directs the Commission to establish the Universal Service Board for the purpose of: (1) ensuring equitable and efficient economic treatment of users of common carrier services and exchange services and carriers providing such services; (2) providing for an orderly transition to the system of charges for exchange access established by this Act; and (3) achieving cooperation between the Federal Government and the States. Directs the Board to: (1) establish and maintain formulas for defining and comparing national average costs and charges and uniform practices for determining the payments required by the Fund, and to oversee the distribution of funds from the Fund by the exchange access board; (2) make such changes and modifications in the system of jurisdictional separation of carrier property and expenses in force as may be necessary for the transitional system of charges for exchange access; and (3) determine at regular intervals the relative assignment by exchange common carriers of the cost of factors of production which are used jointly or in common to provide exchange service and exchange access.

Grants State commissions authority: (1) to establish classifications for exchange facilities and the portion of facilities used jointly for exchange and interexchange services assigned to the States by the Board; and (2) to prescribe the methods by which exchange carriers shall recover investments in such facilities. Requires such methods to provide for recovery of investments in such classes of facilities in a manner which promotes the economic viability of the exchange carriers involved.

Provides that in the case of any interexchange service provided by any carrier under a tariff in effect July 1, 1983, which was filed jointly with another carrier or under any successor tariff in effect after such date, the tariff applicable to such service provided by such carrier shall be based on the nationwide average of the cost of providing interexchange service.

Authorizes a State commission to require any exchange common carrier to lease and maintain on request a single basic one-line telephone instrument, and associated wiring, to any subscriber within such State on the basis of a tariff that includes all costs of providing and maintaining such instrument and wiring.

Requires each State commission to establish rules for the provision of lifeline telephone service by exchange carriers which consists of providing minimum telephone exchange service at a discounted rate for low-income residential customers.

Prohibits any carrier or exchange carrier from using revenues from regulated communications services to defray any costs associated with its entry into or engaging in commercial activities the prices for which are not regulated by the Commission or any State commissions.