Government Affairs

USF Quarterly Contribution Factor for Q3 2020 Raised from 19.6% to 26.5%; “One-Way” VoIP Services May Soon be Subject to USF

June 15, 2020

The FCC Office of Managing Director released a public notice on June 12, 2020, announcing the proposed universal service contribution factor for the third quarter of 2019 will be 26.5%, up from the previous quarter’s 19.6%.

At 26.5%, the Q3 USF Contribution Factor is the highest ever recorded.

In related news (as our firm predicted may happen back in December 2019), the FCC has taken the first step towards adopting rules that would add revenue from “Non-Interconnected VOIP” and other “One-Way VOIP” services to the USF contribution base, thus subjecting such revenue to USF contributions. Our firm is currently reviewing the public notice announcing the move and will be sending a separate advisory with details and analysis.

In the meantime, any questions regarding the steep hike in USF contribution factor or the Commission’s move to subject One-Way VoIP to USF may be directed to Jonathan S. Marashlian at jsm@commlawgroup.com.

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