3Q 2018 USF Contribution Factor to Drop Again to 17.9%

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The FCC’s Office of Managing Director (OMD) has proposed that the universal service fund (USF) contribution factor for third quarter (Q3) 2018 be set at 17.9 percent. Contributions to the federal USF support mechanisms are determined using a quarterly contribution factor calculated by the FCC. The Commission calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of USF support mechanisms to contributors’ total projected collected end-user interstate and international telecommunications revenues, net of projected contributions. Projected revenues for 3Q 2018 based on information from FCC Form 499-Q are forecasted at around $12.95 billion.  The proposed 17.9% contribution factor will be deemed approved if the FCC takes no action within 14 days of OMD’s announcement.

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