USF Contribution Factor May Edge Down in Q1, if Revenue is Flat, Consultant Gregg Says
The USF contribution factor could drop in Q1 to 19.7 percent, from Q4's 20.1 percent, of carrier U.S. interstate and international (long-distance) telecom end user revenue, said industry consultant Billy Jack Gregg's email update Friday, citing a Universal Service Administrative…
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Co. demand projection in FCC docket 06-122. But the factor could be higher than 19.7 percent if the long-term decline in the industry's revenue base continues in Q1, he said, noting an expected 2018 base of $51 billion would be the lowest in USF history. USAC's Q1 revenue projection is due at the end of November. Overall, USF demand for Q1 was $2.02 billion, $34.4 million less than in Q4, with a high-cost fund decrease of $51.6 million the biggest factor, he said.