Telecom carriers will contribute slightly less to the Universal S...
Telecom carriers will contribute slightly less to the Universal Service Fund as a percentage of revenue in the fourth quarter, the FCC said. The “contribution factor,” or percent of interstate and international revenue that carriers donate to the fund,…
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will drop to 11 percent in the fourth quarter, starting in October, from 11.3 percent. After rising significantly in the second quarter, to 11.7 percent from 9.7 percent, that percentage has been dropping slightly. The percentage reflects the sum spent on USF subsidies and the amount of industry revenue available to draw from. The fourth-quarter figure is designed to collect $1.9 billion, more than half going to the “high-cost” fund to support rural telephony. The rest goes to the E-rate, Lifeline low-income support and rural health care services.