USF Contribution Factor To Edge Down From 17.1 to 16.7 Percent, Gregg Projects

The 4Q USF contribution rate for carriers will drop to 16.7 percent (from 17.1 percent) of interstate and international telecom revenue, said industry consultant Billy Jack Gregg in his quarterly update Tuesday. Despite projections by Universal Service Administrative Co. that the interstate/international telecom revenue base will decline from $15.046 billion to $15 billion in 4Q, the contribution factor is expected to dip because the previously announced USF demand for the quarter also declined from $2.17 billion to $2.12 billion, said Gregg of Universal Consulting.