USF Contribution Factor Climbs To 33 Percent For Third Quarter Of 2022
June 9, 2022 – The Federal Communications Commission’s Office of Managing Director has announced that the proposed universal service fund (USF) contribution factor for the third quarter of 2022 will be will be 33 percent.[1]
To provide some perspective, this is the second highest USF contribution factor of all time, and signifies a 9.2 increase from last quarter. The table below shows quarterly USF contribution factors as well as yearly averages.
For the third quarter of 2022, the Universal Service Administrative Company (USAC) projects $8.285056 billion in total interstate and international end-user telecommunications revenues will be collected.[2] This is the seventh straight quarter in which the total USF contribution base has declined.
USAC estimates that $2.036310 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the third quarter of 2022. (The 2Q 2022 demand was $1.664020 billion, and the 1Q 2022 demand was $1.84091 billion.)
Total third quarter 2022 demand includes projected program support, administrative expenses, and true-ups and adjustments, and breaks out as follows:
E-Rate Schools & Libraries: $606.99 million
Rural Health Care: $159.25 million
High-Cost: $992.51 million
Lifeline: $269.22 million
Connected Care: $8.34 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.
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[1] Proposed Third Quarter 2022 Universal Service Contribution Factor, CC Docket No. 96-45, Public Notice, DA 22-623 (June 9, 2022), https://docs.fcc.gov/public/attachments/DA-22-623A1.pdf.
[2] Universal Service Administrative Company, Federal Universal Service Support Mechanisms Quarterly Contribution Base for the Third Quarter 2022, WC Docket No. 06-122, CC Docket No. 96-45 (June 1, 2022), https://www.fcc.gov/ecfs/search/search-filings/filing/10601007678045.