AVL Blog - Communications Law & Technology

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USF Contribution Base Continues To Shrink

June 1, 2021 – The Universal Service Administrative Company (USAC) has filed data on projected interstate and international end-user revenue that will make up the universal service fund (USF) contribution base for the third quarter of calendar year 2021.

Based on this carrier data, USAC has determined that the total projected end-user revenue base for the third quarter of 2021 is $9,665,944,070.

To provide a comparison, the USF contribution base for the past six quarters are as follows:

  • Second Quarter 2021: $9,905,669,690

  • First Quarter 2021: $10,068,712,553

  • Fourth Quarter 2020: $10,428,377,862

  • Third Quarter 2020: $10,219,123,520

  • Second Quarter 2020: $10,865,131,593

  • First Quarter 2020: $11,129,976,956

USAC’s estimated revenue base for the third quarter of 2021 was derived from projected collected revenue for July to September 2021 reported by telecommunications service providers using FCC Form 499-Q submitted in May 2021 – 4,654 reporting carriers, of which 3,189 are USF contributors and 1,465 are non-contributing de minimis carriers. As of May 19, 2021, USAC has yet to receive information from 261 non-de minimis telecommunications service providers that had previously submitted information to USAC.

Upon Federal Communications Commission approval of the total USF contribution base, the quarterly funding requirements for the four USF support mechanisms, and projected administrative costs, the FCC will establish a USF contribution factor for the third quarter of 2021. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.