Proposed USF Contribution Factor to Remain above 30%

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The FCC’s Office of Managing Director (OMB) is proposing to revert the universal service fund (USF) contribution factor back down to 0.318 (31.8%) after it reached a record high of 33.4% the prior quarter  If no further action is taken by the FCC in the next 14 days, the proposed factor will be adopted. The FCC calculates the USF contribution factor quarterly based on the ratio of projected USF support costs to contributors’ projected end-user revenues. The contribution factor has been trending significantly upward over the past few years as the USF contribution base continues to contract.

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