FCC Announces Proposed Q3 2024 USF Contribution Factor

On June 12, 2024, the Office of Managing Director (“OMD”) released a Public Notice announcing that the proposed universal service contribution factor for the third quarter of 2024 will be 0.344 or 34.4%. Per FCC rules, during the third quarter of 2024, carriers may not recover through a federal universal service line item an amount that exceeds 34.4% of the interstate telecommunications charges on a customer’s bill. The contribution factor for the second quarter of 2024 was 0.328 or 32.8%.

As a reminder, the FCC calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors’ total projected end-user interstate and international telecommunications revenues, net of projected contributions.  The total projected collected revenue amount for the third quarter of 2024 is $8.302171 billion. The adjusted contribution base (the projected collected revenues decreased by the projected revenue requirement to account for circularity and decreased by one percent to account for uncollectable contributions) is $6.132813 billion.

The proposed contribution factor will be deemed approved 14 days following the release of the Public Notice, unless the Commission takes any action regarding the projections for demand and administrative expenses and/or the proposed contribution factor.

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