FCC Announces 1st Quarter 2021 Contribution Factor

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The Federal Communications Commission (FCC or Commission) has announced that the proposed universal service contributor factor for the first quarter of 2021 will be 31.8 percent, or 0.318.  The contribution factor is calculated by taking the ratio of the total projected quarterly costs of the universal service support mechanisms to contributors’ total projected collected end-user revenues.  The Commission projects that collected end-user revenues will amount to about $10 billion in the first quarter of 2021.  Each provider’s contribution obligation will be reduced by the circularity discount, 0.240341, which approximates for the provider’s contributions in the upcoming quarter.  This proposed contribution factor will become effective 14 days after the release of the Public Notice.

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