FCC Releases Public Notice on Proposed USF 2019 Third Quarter Contribution Factor

On June 12, 2019, the Commission’s Office of Managing Director (“OMD”) released a Public Notice announcing that the proposed universal service contribution factor for the third quarter of 2019 will be 0.244 or 24.4%. Last quarter, the contribution factor was 0.188 or 18.8%.

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 third quarter of 2019, the projected revenue requirement (or “costs”) of universal service support is $2.228690 billion and the projected industry revenue is $11.483306 billion. The quarterly contribution base is then adjusted to $9.162070 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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