USF Contribution Factor To Stay At 17.9 Percent

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The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2016 is 17.9 percent. This is identical to the rate that was used in the second quarter of 2016.  OMD also announced that for the third quarter of 2016, the Universal Service Administrative Company (USAC) projects that it will collect $14.5 billion in total interstate and international end-user telecommunications revenues.  USAC estimates that $2.18 billion will be needed to cover the total demand and expenses for all Federal universal service support mechanisms in the third 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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