FCC Announces Proposed USF Contribution Factor of 28.9% for the Fourth Quarter of 2022

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The Federal Communications Commission’s (FCC or Commission) Office of Managing Director (OMD) has issued a Public Notice announcing that the proposed Universal Service Fund (USF) contribution factor will be 28.9% for the second quarter of 2022.  This is notably lower than the 33.0% for the third quarter of 2022, while also being higher than the 25.2% and 23.8% and factors for the first and second quarters of 2022 respectively.  The funding base for contributions has declined from $9.52 in the fourth quarter of 2021 to $8.62 in the same quarter this year.  However, the revenue requirement for USF has also declined from $2.12 billion to $1.91 billion in the same quarter this year.   The 28.9% contribution factor will take effect automatically if the Commission takes no action regarding the projections of demand and administrative expenses and the proposed contribution factor on or before September 27, 2022.

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