USF Contribution Factor Set at 17.9 For Second Quarter of 2016


The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the second quarter of 2016 will be 17.9 percent. This is a slight decrease from the 18.2 percent rate that was used in the first quarter of 2016, which was an all time high. OMD also announced that for the second quarter of 2016 the Universal Service Administrative Company (USAC) projects that it will collect $14.7 billion in total interstate and international end-user telecommunications revenues. USAC estimates that $2.21 billion will be needed to cover the total demand and expenses for all Federal universal service support mechanisms in the second quarter of 2016. If the Commission takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.

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