USF Contribution Factor to Drop From Q1's 20% to 18.8% in Q2, Gregg Says
The Q2 USF contribution factor will fall to 18.8 percent from Q1's 20 percent of carriers' U.S. interstate and international telecom end-user revenue, consultant Billy Jack Gregg emailed Friday. Universal Service Administrative Co. projected USF-applicable telecom revenue will edge down…
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$23 million to $12.27 billion in Q2, which combined with a previous projection of $1.92 billion in quarterly USF demand produces the expected factor drop. The Q2 revenue decline continues a downward trend that places long-term upward pressure on the factor, he noted: USF revenue for the year through Q2 is expected to be $1.9 billion lower than the year ending in Q2 2018, a 3.6 percent decline.