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Proposed Contribution Factor

The FCC recently released their proposed contribution factor for second quarter 2018 which will be 18.4 percent. The contribution factor requires telecommunications companies to pay a percentage of their interstate end-user revenues to the Universal Service Fund. The FCC announcement also “…emphasizes that carriers may not mark up federal universal service line-item amounts above the contribution factor.  Thus carriers may not, during the second quarter of 2018, recover through a federal universal service line item an amount that exceeds 18.4% of the interstate telecommunications charges on a customer’s bill.”
The second quarter contribution factor public notice can be viewed here.
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