USF Contribution Factor Skyrockets To 31.8 Percent – New All Time High Set For First Quarter 2021
UPDATE: USF Contribution Factor Jumps To 33.4 Percent – Another New All Time High!
March 12, 2021 – As expected, the universal service fund (USF) contribution factor will hit a new all time high next quarter. Today, the Federal Communications Commission’s Office of Managing Director announced that the proposed contribution factor for the second quarter of 2021 will be 33.4 percent
December 14, 2020 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the first quarter of 2021 will be 31.8 percent.
This crushes the previous USF contribution factor record of 27.1 percent set during the fourth quarter of 2020.
First Quarter 2021 Projected Revenues – Down $359,667,000
For the first quarter of 2021, the Universal Service Administrative Company (USAC) projects $10.068713 billion in total interstate and international end-user telecommunications revenues will be collected. (A total of $10.42838 billion in collected interstate and international end-user telecommunications revenues was projected for the fourth quarter of 2020.)
First Quarter 2021 USF Demand And Administrative Expenses
USAC estimates that $2.40799 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms in the first quarter of 2021. (A total of $2.204790 billion was needed to cover demand and expenses for the fourth quarter of 2020.)
The total demand and expenses for universal service support mechanisms includes projected program support, administrative expenses, and true-ups and adjustments. For the first quarter of 2021, it breaks out as follows:
Schools & Libraries: $611.27 million
Rural Health Care: $166.88 million
High-Cost: $1.35919 billion
Lifeline: $262.32 million
Connected Care: $8.33 million
If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved. Historical information on quarterly universal service fund contribution factors is available online from the FCC.
For what it’s worth, here’s a look at contribution factors for the last 7 years:
2020-Q1 – 20 | 2020-Q2 – 19.6 | 2020-Q3 – 26.5 | 2020-Q4 – 27.1 | 2020 Average: 23.3
2019-Q1 – 20 | 2019-Q2 – 18.8 | 2019-Q3 – 24.4 | 2019-Q4 – 25 | 2019 Average: 22.05
2018-Q1 – 19.5 | 2018-Q2 – 18.4 | 2018-Q3 – 17.9 | 2018-Q4 – 20.1 | 2018 Average: 18.975
2017-Q1 – 16.7 | 2017-Q2 – 17.4 | 2017-Q3 – 17.1 | 2017-Q4 – 18.8 | 2017 Average: 17.5
2016-Q1 – 18.2 | 2016-Q2 – 17.9 | 2016-Q3 – 17.9 | 2016-Q4 – 17.4 | 2016 Average: 17.85
2015-Q1 – 16.8 | 2015-Q2 – 17.4 | 2015-Q3 – 17.1 | 2015-Q4 – 16.7 | 2015 Average: 17
2014-Q1 – 16.4 | 2014-Q2 – 16.6 | 2014-Q3 – 15.7 | 2014-Q4 – 16.1 | 2014 Average: 16.2
2013-Q1 – 16.1 | 2013-Q2 – 15.5 | 2013-Q3 – 15.1 | 2013-Q4 – 15.6 | 2013 Average: 15.57
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