Universal service is Federal program that ensures all Americans 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.
The proposed contribution factor for 3Q-2023 is 0.292 or 29.2%
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.