FCC Announces Proposed USF Q3 2021 Contribution Factor

On Thursday, June 10, 2021, the Office of Managing Director (“OMD”) released a Public Notice (DA 21-676) announcing that the proposed universal service contribution factor for the third quarter of 2021 will be 0.318 or 31.8%.  Per FCC rules, during the third quarter of 2021, carriers may not recover through a federal universal service line item an amount that exceeds 31.8% of the interstate telecommunications charges on a customer’s bill.  The contribution factor for the second quarter of 2021 was 0.334 or 33.4%.

As a reminder, the FCC calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors’ total projected end-user interstate and international telecommunications revenues, net of projected contributions.  The projected demand and administrative expenses for the third quarter of 2021 is $2.31340 billion.  The projected industry revenues for the third quarter of 2021 is $9.665944 billion.  The adjusted contribution base (the projected industry revenues decreased by the projected revenue requirement to account for circularity and decreased by one percent to account for uncollectible contributions) is $7.279019 billion.

The contribution factor will be deemed approved 14 days following the release of the Public Notice, unless the Commission takes any action regarding the projections for demand and administrative expenses and/or the proposed contribution factor.

Please Contact Us if you have any questions.

Recent Posts

May 17, 2024 Weekly Wireless Wrap-Up

Good afternoon from Washington, DC!  Below you will find this week’s Wireless Wrap-Up; your update on the wireless telecommunications regulatory landscape, important wireless decisions, and

Read More