USF Contribution Factor Expected to Increase From 18.8% to 19.5% in Q1, Gregg Says
The USF contribution rate is expected to rise in Q1 from 18.8 percent to 19.5 percent of carriers' U.S. interstate and international telecom end-user revenue, said industry consultant Billy Jack Gregg in a Friday email. The Universal Service Administrative Co.…
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projected USF-applicable telecom revenue for Q1 to be $12.87 billion, a quarterly drop of about $154 million that continues the downward trend in the contribution base, he said. That, combined with USAC's previously projected Q1 USF demand of $2.08 billion, produced the expected increase in the contribution factor, he said. Amy Bender, aide to FCC Commissioner Mike O'Rielly, chairman of three federal-state joint boards, on Nov. 9 said her boss had discussions with state colleagues about USF contribution issues but was more focused on making recommendations by the end of March on possible jurisdictional separations changes (see 1711090043). The separations issues remain "where our focus is right now," an O'Rielly spokeswoman told us Monday. State joint board members are ready to recommend changes to the USF contribution mechanism, said State Chair Chris Nelson at a NARUC meeting in November (see 1711130035).