The Federal Communications Commission released a public notice on December 14, 2020, announcing the proposed universal service contribution factor for the first quarter of 2021 will be 31.8%, up from the previous quarter’s 27.1%.  

At 31.8%, the Q4 Universal Service Fund (“USF”) contribution Factor is the highest ever recorded.  Breaking last quarter’s record… which broke the record set one quarter earlier!  (Are we starting to see a trend?)

If your company has any questions regarding the steep hike in USF contribution factor or would like to engage in a Communications Taxes & Fees “Optimization” to potentially minimize the economic impact of the ever-skyrocketing Federal USF contribution costs and end user pass-through surcharges, please contact Jonathan S. Marashlian at jsm@commlawgroup.com.

We’ll leave you with some food for thought: 

“If you aren’t OPTIMIZING your communication tax and regulatory fee billing, collection & reporting practices, then you (and your customers) are SUBSIDIZING the companies that are!”