Communications Daily is a service of Warren Communications News.

FCC Proposes Record High USF Contribution Factor of 25%

The proposed Q4 contribution factor for USF programs is 25 percent, the FCC Office of Managing Director announced in Friday's Daily Digest on docket 96-45. That's a record high (see 1909030010). The USF administrator projected 4Q demand of more than…

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$2 billion for the Lifeline, E-rate subsidies to schools and libraries, rural healthcare and high-cost broadband support programs. If the FCC doesn't act on the OMD's proposal within 14 days of the public notice, it's deemed approved. The Free State Foundation wants the FCC and Congress "to look seriously at further meaningful reforms to increase the cost-effectiveness and efficiency of the USF programs and to increase even further efforts to weed out waste, fraud and abuse," said President Randolph May in a statement Friday. He noted the USF surcharge was 7 percent in 4Q 2001,13 percent in 2010 and 17 percent in 2015.