2Q 2019 USF Contribution Factor Drops to 18.8%

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The FCC’s Office of Managing Director (OMD) has proposed that the universal service fund (USF) contribution factor for the second quarter (2Q) of 2019 be set at 18.8 percent, which is a drop from the 20.0 percent contribution factor set for 1Q 2019.  The quarterly contribution factor is calculated based on the ratio of projected USF costs to contributors’ projected end-user telecommunications revenues.  Projected revenues for 2Q 2019 are forecast at approximately $12.27 billion.  Revenues from voice services continue to decline; however, the USF contribution base remains unadjusted.

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