The Universal Service Fund contribution factor will decrease to 17.4 percent...
The Universal Service Fund contribution factor will decrease to 17.4 percent for Q2, the FCC said Tuesday, from a Q1 factor of 17.9 percent. The Universal Service Administrative Co. determined the contribution factor by dividing the projected total program collection…
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of $2.4 billion by the projected adjusted quarterly contribution base of $13.9 billion, and then rounding up to the nearest tenth of a percent. NTCA Senior Vice President Michael Romano said fluctuations in the contribution factor from quarter to quarter cannot mask the need for comprehensive contribution reform. “While some may paint with a broad brush, the fact is that the high-cost portion of the federal universal service program has not increased materially in several years -- the most significant growth in demand has come from other parts of the fund,” he told us. “Until the FCC addresses in a targeted way these specific demand issues and until it reforms the contribution mechanism to ensure that all who use broadband-capable networks contribute to their availability and affordability, these concerns will linger and debate will recur every calendar quarter."