FCC Announces Proposed Q3 2022 USF Contribution Factor

On June 9, 2022, the Office of Managing Director (“OMD”) released a Public Notice announcing that the proposed universal service contribution factor for the third quarter of 2022 will be 0.330 or 33.0%.  Per FCC rules, during the third quarter of 2022, carriers may not recover through a federal universal service line item an amount that exceeds 33.0% of the interstate telecommunications charges on a customer’s bill.  The contribution factor for the second quarter of 2022 was 0.238 or 23.8%.

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 2022 is $2.036310 billion.  The projected industry revenues for the third quarter of 2022 is $8.285056 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 $6.186259 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.

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