USF Contribution Factor to Decline From 19.5% to 18.4% in Q2, Consultant Gregg Says
The USF contribution factor for Q2 will drop from 19.5 percent to 18.4 percent of carriers' U.S. interstate and international (long-distance) telecom end-user revenue, emailed industry consultant Billy Jack Gregg Friday. He said Universal Service Administrative Co. Q2 projection of…
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USF revenue was $12.8 billion, about $66 million less than the previous quarter, which he combined with the previously announced Q2 USF demand projection of $1.97 billion (see 1802010024) to produce the contribution factor estimate. The decline in revenue "continues the downward trend in the USF contribution base, which places upward pressure on the USF assessment factor," he said. "USF revenues for the four quarters ending [in Q2] are $4.55 billion lower than revenues for the four quarters ending [in Q2 2017], an 8.1% decline."