OMD Announces Universal Service Contribution Factor for Fourth Quarter 2020

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The Federal Communications Commission’s (FCC or Commission) Office of Managing Director (OMD) has issued a Public Notice announcing a contribution factor of 27.1 percent for the fourth quarter of 2020 that will support the federal universal service support mechanisms. The contribution factor is calculated using the total projected quarterly costs of universal service support mechanisms and the total projected collected end-user interstate and international telecommunications revenues. Each provider’s contribution obligation will be reduced by the circularity discount approximating the provider’s contributions in the upcoming quarter.

Contribution payments will be due on the dates provided on each provider’s invoice. For late payments: (1) interest will accrue daily; (2) contributors may be subject to enforcement measures by the Commission; and (3) contributors may be billed by the Universal Service Administrative Company (USAC) for the reasonable costs in collecting the late payments.

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