USF Contribution Factor Climbs to 17.4 Percent


The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service contribution factor for the second quarter of 2015 will be 0.174 or 17.4 percent. This is a .6 percent increase from the 16.8 percent contribution factor that was used for the first quarter of 2015. OMD projects that the total collected interstate and international end-user telecommunications revenues for the first quarter of 2015 will be $15.15 billion, while the projected revenue needed to fund all four universal service fund mechanisms in the first quarter of 2015 is $2.215 billion. The projected total demand and expenses for each universal service fund support mechanism for the second quarter of 2015 are as follows: Schools and Libraries – $598 million; Rural Health Care – $67 million, High-Cost – $1.135 billion; and Low Income – $414 million. If the FCC takes no action on the proposed contribution factor within 14 days following its announcement, the rate will be declared approved.

Share Button


Please enter your comment!
Please enter your name here