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 for rural areas
- Lifeline (for low-income consumers)
- 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 1Q-2024 is 0.346 or 34.6%
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.