FCC Announces Proposed USF Contribution Factor for 4Q of 2023


The FCC’s Office of Managing Director has announced that the proposed universal service contribution factor for the fourth quarter of 2023 will be 34.5 percent.  The Commission calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributor’s total projected collected end-user interstate and international telecommunications revenues.  Based on submitted Form 499-Qs, the total projected collected interstate and international end-user telecommunications revenues for this upcoming quarter are about $8.17 billion. 

The FCC makes clear that, during the fourth quarter of 2023, carriers may not recover through a federal universal service line-item an amount exceeding 34.5 percent of the interstate telecommunications charges on a customer’s bill.

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