USF Contribution Factor Climbs to 17.4 Percent

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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.

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