FCC Announces Q2 Contribution Factor for Universal Service Fund

Posted on Apr 20, 2022 in Jeff Nolte's Blog

Universal service is the principle that all Americans should have access to communications services. Universal service is also the name of a fund and the category of FCC programs and policies to implement this principle and related programs, which include:

  • Connect America Fund (formally known as High-Cost Support) for rural areas
  • Lifeline (for low-income consumers), including initiatives to expand phone service for residents of Tribal lands
  • Schools and Libraries (E-rate)
  • Rural Health Care

More FCC background on Universal Service

Quarterly Contribution Factor

Each quarter telecommunications carriers – including wireline and wireless companies, VoIP providers, and cable companies that provide voice service – must pay a percentage of their interstate and international end-user revenues to the Universal Service Fund as a contribution factor.

The Commission calculates the industry’s quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors’ total projected collected end-user interstate and international telecommunications revenues, net of projected contributions.

Proposed contribution factor for 2Q-2022 is 0.238 or 23.8%

More FCC information on contribution factors

We’ll continue to keep you informed on FCC actions that may impact your services and costs. Contact CTS today at 800.787.4848 or jnolte@ctsmd.us.