New Record! USF Contribution Factor For Fourth Quarter Of 2024 – 35.8 Percent

September 11, 2024 – The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service fund (USF) contribution factor for the fourth quarter of 2024 will be 35.8 percent. If the FCC takes no action on the proposed USF contribution factor within 14 days, it will be declared approved.

The 35.8 percent contribution factor for 4Q 2024 sets a new record, besting the previous all-time high of 34.6 percent which occurred in 1Q 2024. It’s also only a slight increase from the 34.4 percent contribution factor that was used for 3Q 2024. Historical information on quarterly universal service fund contribution factors is available online from the FCC. All USF contribution factors for 2024 are below:

1Q 2024 – 34.6%
2Q 2024 – 32.8%
3Q 2024 – 34.4%
4Q 2024 – 35.8%
2024 Average USF Contribution Factor – 34.4%

For the fourth quarter of 2024, the Universal Service Administrative Company (USAC) projects $7.972750 billion in total interstate and international end-user telecommunications revenues will be collected ($8.302171 billion was projected for 3Q 2024). USAC estimates that $2.084640 billion is needed to cover the total demand and expenses for all Federal universal service support mechanisms (revenue requirement) in the fourth quarter of 2024 (the 3Q 2024 demand was estimated at $2.10741 billion). Total fourth quarter 2024 demand includes projected program support, administrative expenses, and true-ups and adjustments, which breaks out among the USF support mechanisms as follows:

E-Rate Schools & Libraries: $666.28 million (3Q 2024 was $639.08 million)
Rural Health Care: $150.05 million (3Q 2024 was $93.57 million)
High-Cost: $1.06994 billion (3Q 2024 was $1.17122 billion)
Lifeline: $198.37 million (3Q 2024 was $203.54 million)

FCC Issues Notice Of Apparent Liability To Broadband Providers For Apparent Violations Of ACP Rules

September 11, 2024 – The Federal Communications Commission (FCC) has issued a Notice of Apparent Liability (NAL) against four broadband internet access service providers that allegedly violated the FCC’s Affordable Connectivity Program (ACP) Transparency Data Collection (TDC) rules by failing to submit certified complete ACP plan and subscribership data. The four providers are:

SprintFone Inc. ( FRN: 0032347759; File No.: EB-IHD-24-00036894; NAL/Acct No.: 202432080022)
IJ Wireless, Inc. (FRN: 0032944597; File No.: EB-IHD-24-00036896; NAL/Acct No.: 202432080023)
Culture Wireless LLC (FRN: 0031329923; File No.: EB-IHD-24-00036898; NAL/Acct No.: 202432080024)
Cathect Communications, Inc. (FRN: 0030065312; File No.: EB-IHD-24-00036900; NAL/Acct No.: 202432080025)

The FCC has proposed a cumulative fine of $470,605.62 apportioned among the four broadband providers. Each has 30 calendar days to pay the full amount of their portion of the proposed forfeiture.

FCC Tentative Agenda For September 26th Open Meeting

September 5, 2024 – Communications Commission Chairwoman Jessica Rosenworcel has announced the following tentative agenda for FCC’s next open meeting scheduled for Thursday, September 26, 2024:

Improving Access to Video Conferencing Services – The Commission will consider a Second Report and Order and Further Notice of Proposed Rulemaking to ensure that people with disabilities can fully participate in video conferencing, including by the use of telecommunications relay services (TRS). (CG Docket Nos. 23-161, 10-213, 03-123)

Bolstering Protections Against Robocalls and Texts –The Commission will consider a Report and Order that would bolster current FCC rules on blocking and robocall mitigation in key areas, including by expanding requirements to block calls based on reasonable do-not-originate lists and by creating new financial penalties for carriers who fail to protect consumers from illegal calls. (CG Docket Nos. 17-59, 21-402)

Freeing Up Spectrum to Support Satellite Broadband Service – The Commission will consider a Report and Order that will provide 1300 megahertz of spectrum in the 17 GHz band for non-geostationary satellite orbit (NGSO) space stations in the fixed-satellite service (FSS) while also protecting incumbent operations. The Order provides a more cohesive global framework for FSS operators and maximizes the efficient use of the 17 GHz band spectrum. (IB Docket No. 22-273)

Improving Digital FM Radio Service – The Commission will consider a Report and Order implementing a streamlined process for authorizing digital transmissions at different power levels on the upper and lower digital sideband in order to enhance digital FM radio coverage and prevent interference. (MB Docket No. 22-405)

Enforcement Bureau Action – The Commission will consider an enforcement action.