FCC Increases USF Rate To 17.9%

Universal Service Fund

fccContribution Factor & Quarterly Filings – Universal Service Fund (USF) Management Support

Proposed contribution factor for first quarter 2012 is .179 or 17.9 percent.

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Contribution Factor: Telecommunications companies must pay a percentage of their interstate end-user revenues to the Universal Service Fund. This percentage is called the contribution factor. The contribution factor changes four times a year (quarterly) and is increased or decreased depending on the needs of the Universal Service programs. You can read more about the contribution factor in the FCC’s Fact Sheet on Universal Service.

Quarterly Administrative Filings: Quarterly Administrative filings are submitted each quarter to the FCC by the Universal Service Administrator. The quarterly administrative filings contain information about the needs of the Universal Service fund in the upcoming quarter. The FCC uses this information to calculate the contribution factor.