USF Contribution Factor Jumps to 16.8 Percent


The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service contribution factor for the first quarter of 2015 will be 0.168 or 16.8 percent. This is a .7 percent increase from the 16.1 percent contribution factor that was used for the fourth quarter of 2014. OMD projects that the total collected interstate and international end-user telecommunications revenues for the first quarter of 2015 will be $15.30 billion, while the projected revenue needed to fund all four universal service fund mechanisms in the first quarter of 2015 is $2.18 billion. 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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