FCC Proposes 18.2 Percent USF Contribution Rate for Q1
The FCC proposed a USF contribution factor for Q1 of 18.2 percent of interstate and international telecom revenue, the Office of Managing Director said in a public notice Friday in docket 96-45. That was as projected by industry analyst Billy…
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Jack Gregg (see 1512040003). The proposed contribution factor will be deemed approved if the agency doesn't act on it within 14 days, the PN said. U.S. interstate and international (long-distance) revenue from end-users was projected to be $14.9 billion next quarter, continuing a long-term downward trend. Total USF support is projected to be $2.2 billion next quarter, with high-cost, rural support at $1.25 billion, followed by school and library E-rate discounts at $603 million, low-income (mainly Lifeline) support at $396 million and rural healthcare at $73 million. FCC Commissioner Mike O'Rielly voiced concern about the rising USF assessments on telecom carriers, and issued a warning about assessing broadband. "After hovering around the 16% mark throughout 2014 and 17% this year, the USF contribution factor tacked onto a portion of everyone’s telecom bills jumps past 18% to kick off 2016," he said in a statement Friday. "And with an unrestrained expansion of Lifeline plus an expansion of USF fees to broadband consumers at the top of many wish lists, who knows how much deeper Americans will have to dig into their pockets by next December? The entire situation is clearly unsustainable but the solution cannot be to capture broadband services in this morass."