Telecommunications companies must pay a percentage of their interstate end-user revenues to the Universal Service Fund, which subsidizes telephone service to low-income households and high-cost rural areas. This percentage is called the contribution factor, which is updated four times a year and is increased or decreased depending on the needs of the Universal Service programs.
This is to alert you that the FCC’s Universal Service Administrative Company has implemented another hike in the quarterly contribution factor for the Federal Universal Service Fund (FUSF). The contribution factor for first quarter 2021 is 0.318 or 31.8 percent. Such increases push monthly consumer and business phone bills higher.
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