The Commission’s Office of Managing Director (“OMD”) released a Public Notice announcing that the proposed universal service contribution factor for the fourth quarter of 2020 will be 0.271 or 27.1%.  Carriers may not, during the fourth quarter of 2020, recover through a federal universal service line item an amount that exceeds 27.1% of the interstate telecommunications charges on a customer’s bill.  Last quarter, the contribution factor was 0.265 or 26.5%.

 

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 fourth quarter of 2020, the projected revenue requirement (or “costs”) of universal service support is $2,204.79 million and the projected industry revenue is $10.42838 billion.  The quarterly contribution base is then adjusted to $8.141352 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.

 

Please Contact Us if you have any questions.