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Proposed 4th Qtr Contribution Factor

The FCC recently released their proposed contribution factor for fourth quarter 2020 which will be 27.1 percent. The contribution factor requires telecommunications companies to pay a percentage of their interstate end-user revenues to the Universal Service Fund. The FCC announcement also “…emphasizes that carriers may not mark up federal universal service line-item amounts above the contribution factor.  Thus carriers may not, during the fourth quarter of 2020, recover through a federal universal service line item an amount that exceeds 27.1% of the interstate telecommunications charges on a customer’s bill.”
 
The fourth quarter 2020 contribution factor public notice can be viewed here.
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