4Q 2016 USF Contribution Factor Dips to 17.4%

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The FCC’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for fourth quarter (Q4) 2016 will be 17.4%, which is half a point down from the Third Quarter 2016 rate. Additionally, for Q4 2016 the Universal Service Administrative Company projected $14.2 billion of total interstate and international end-user telecommunications revenues and estimated $2.08 billion to cover the total demand and expenses for all Federal USF support mechanisms in Q4 2016. The proposed 17.4% contribution factor will be deemed approved if the FCC takes no action within 14 days.

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