FCC Releases Proposed USF 2018 Q2 Contribution Factor

The Commission’s Office of Managing Director (“OMD”) released a Public Notice announcing that the proposed universal service contribution factor for the first quarter of 2018 will be 0.184 or 18.4%. Last quarter, the contribution factor was 0.195 or 19.5%.

The rate is calculated based on the ratio of total projected quarterly costs of universal service support mechanisms to contributors’ total projected collected end-user interstate and international telecommunications revenues, net of projected contributions. For the second quarter of 2018, the projected revenue requirement (or “costs”) of universal service support is $1.968100 billion and the projected industry revenue is $12.805676 billion. The quarterly contribution base is then adjusted to $10.729200 billion. If the Commission fails to act within 14 days following the release of the Public Notice, then the calculation is deemed to be approved.

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