December 2, 2022 – The Universal Service Administrative Company (USAC) has filed projected universal service fund (USF) contribution base data which will be used to determine the USF contribution factor for the first quarter of calendar year 2023.[1]

USAC has determined that the total projected collected interstate and international end user revenue base to be used in determining the contribution factor for the Universal Service support mechanisms for the first quarter of 2023 is $8,749,749,511. This is a slight increase in the USF base from the fourth quarter of 2022 ($8.624 billion).[2]

The contribution base data was calculated using projected revenue amounts for January through March 2023 reported by telecommunications service providers on their FCC Forms 499-Q which were due November 1, 2022. For the first quarter of 2023, USAC received projected revenue data from 3,290 USF contributors who filed the November 2022 Form 499-Q. USAC estimated revenue data for 164 non-de minimis service providers that had previously submitted Form 499-Q information to USAC, but failed to make the latest filing.

To provide a historical comparison, USAC’s total projected USF contribution base amounts for the past 12 quarters were as follows:

• Fourth Quarter 2022  –  $8,624,083,282

• Third Quarter 2022  –  $8,285,056,307

• Second Quarter 2022  –  $8,751,403,396

• First Quarter 2022  –  $9,235,845,776

• Fourth Quarter 2021  –  $9,517,295,012

• Third Quarter 2021  –  $9,665,944,070

• 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

After the Federal Communications Commission (FCC) approves the total USF contribution base, the quarterly funding requirements for USF support mechanisms, and projected USF administrative costs, the FCC will establish a USF contribution factor for the first quarter of 2023. The new contribution factor will be announced by an FCC Public Notice. USAC will then bill USF contributors on a monthly basis for their individual obligations based on the approved contribution factor.

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[1] Universal Service Administrative Company, Federal Universal Service Support Mechanisms Quarterly Contribution Base For The First Quarter 2023, CC Docket No. 96-45, WC Docket No. 06-122 (Dec. 2, 2022), https://www.fcc.gov/ecfs/document/120245998650/1.

[2] Universal Service Administrative Company, Federal Universal Service Support Mechanisms Quarterly Contribution Base For The Fourth Quarter 2022, CC Docket No. 96-45, WC Docket No. 06-122 (Sep. 1, 2022), https://www.usac.org/wp-content/uploads/about/documents/fcc-filings/2022/fourth-quarter/financials/USAC-4Q2022-Universal-Service-Contribution-Base-Filing.pdf.