USF Contribution Factor Projected to Jump From 17.1% to 18.8% in Q4, Gregg Says
USF contributions are projected to spike in Q4, from 17.1 percent to 18.8 percent -- a new high -- of carriers' U.S. interstate and international telecom end-user revenue, said industry consultant Billy Jack Gregg in a Friday email. He said…
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the contribution factor hike is due to Universal Service Administrative Co.'s projected drop in the USF revenue base to $13.02 billion -- down $85 million from Q3 and the lowest ever -- combined with a previous projection that USF quarterly demand will be $2.04 billion. The USF revenue base for all of 2017 is projected to be $53.7 billion, down 30 percent since its 2008 peak, and annual USF demand is projected to be $7.9 billion, $848 million lower than in 2016, Gregg wrote. The contribution factor has been trending higher over time.