USF Contribution Factor To Spike to 18.2 Percent in Q1, Gregg Says
The USF contribution factor will jump to 18.2 percent in Q1, from this quarter's 16.7 percent, said industry consultant Billy Jack Gregg in an update Thursday. He said the Universal Service Administrative Co. projected industry long-distance telecom revenue for Q1…
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at $14.93 billion, about $72 million less than in the current quarter. Combined with projected USF demand of $2.277 billion, the revenue decline caused the industry contribution (assessment) factor to spike, he said. "The drop in first quarter 2016 revenues continues the downward trend in the USF contribution base, which places upward pressure on the USF assessment factor." Gregg recently said the contribution factor could top 18 percent for the first time, depending on the projected revenue (see 1511030037).