USF Contribution Factor Dips to 16.7 for Fourth Quarter of 2015


The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service contribution factor for the fourth quarter of 2015 will be 16.7 percent. This is a .4 percent decrease from the 17.1 percent contribution factor that was used for the third quarter of 2015. OMD projects that the total collected interstate and international end-user telecommunications revenues for the fourth quarter of 2015 will be $15 billion, while the projected revenue needed to fund all four universal service fund mechanisms in the fourth quarter of 2015 is $2.121 billion. If the FCC takes no action on the proposed contribution factor within 14 days following its announcement, the rate will be declared approved.

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