The Federal Communications Commission released a public notice on June 10, 2021, announcing the proposed Universal Service Fund (“USF”) contribution factor for the third quarter of 2021 will be 31.8%, a nearly 2% decrease from the previous quarter’s 33.4%.
At 31.8%, the Q3 USF contribution factor breaks the recent trend of record-breaking increases. Yet the factor remains at historic levels, which finally appears to be garnering some attention from policymakers. Last month, FCC Commissioner Brendan Carr (Republican) published an Op-Ed piece that suggests an openness to tapping into the broadband services consumed by large tech companies as a potential funding source.
Any reforms of the USF contribution system, however, will likely take months — and potentially longer — to materialize in any meaningful way. Therefore, the industry should anticipate the quarterly USF contribution factor remaining at stratospheric levels for the foreseeable future.
If your company has any questions regarding the sky high USF contribution factor or would like to engage in a Communications Taxes & Fees “Optimization” to potentially minimize the economic impact of the onerous USF contribution costs and end user pass-through surcharges, please contact Jonathan S. Marashlian at firstname.lastname@example.org.
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!”