FCC Announces Proposed USF Contribution Factor of 33.0% for the Third Quarter of 2022

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The Federal Communications Commission’s (Commission) Office of Managing Director (OMD) has issued a Public Notice announcing that the proposed Universal Service Fund (USF) contribution factor will be 33.0% for the second quarter of 2022.  This is much higher than the 25.2% and 23.8% and factors for the first and second quarters of 2022, respectively.  It is, instead, consistent with the average of 31.5% for 2021 as a whole.  It appears that the reduced factors for the first half of 2022 were the result of one-time events, and the contribution factor will remain at elevated levels in future quarters.  The 33.0% 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 June 23, 2022.

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