USF Contribution Factor Dips to 16.7 for Fourth Quarter of 2015

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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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