The Universal Service Administrative Co. submitted quarterly fund size and...
The Universal Service Administrative Co. submitted quarterly fund size and administrative cost projections for the Universal Service Fund to the FCC Thursday (http://xrl.us/bmqk25). The projections will be used in next month’s calculation of the 2Q contribution factor, which determines the…
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percentage of interstate end-user revenue that telcos must pay into the fund. The High Cost Support Mechanism, which subsidizes telecommunications services in rural areas, has a projected total demand of $1.125 billion. The estimated Low Income Support Mechanism funding requirement is $622.01 million, which includes $573.21 million for Lifeline, $46.11 million for Link Up, and $2.69 million for Toll Limitation Service. Both Link Up and Toll Limitation were cut from the program this week by the FCC (CD Feb 1 p1). The estimated Rural Health Care Support Mechanism demand requirement is $35.74 million. The Schools and Libraries Support Mechanism requirement is $562.5 million, which is one-quarter of the $2.25 billion annual cap on federal universal service support for schools and libraries.