FCC Announced 3rd Quarter Contribution Factor


The Federal Communications Commission’s (FCC or Commission) Office of Managing Director (OMD) has announced that the proposed universal service contribution factor for the third quarter of 2020 will be 0.265 or 26.5 percent. Determined on a quarterly basis, the contribution factor is based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors’ total projected collected end-user revenues. If the Commission takes no further action, within 14 days, then the proposed contribution factor will be deemed approved. The Universal Service Administrative Company (USAC) will reduce each provider’s contribution obligation by a circularity discount approximating the provider’s upcoming quarterly contribution. Contribution payments are due on the dates shown on the invoice.

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