FCC Proposes Raising Contribution Factor to 33.4 Percent

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For the second quarter of 2021, the FCC’s Office of Managing Director (OMB) has proposed raising the universal service contribution factor to 0.334 (33.4 percent).  If no further action is taken by the FCC in the next 14 days, the proposed factor will be adopted.  Each quarter, the FCC calculates the universal service contribution factor based on the ratio of projected universal service support costs to contributors’ projected end-user revenues.  Last quarter’s factor was 31.8 percent.  The factor has been increasing significantly over the past few years.

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