Q4 USF Factor to Increase to Record 27.1%, Says Gregg

The Q4 USF contribution factor will increase from 26.5% to 27.1%, “the highest contribution factor in the history of the USF," Universal Consulting owner Billy Jack Gregg emailed stakeholders Tuesday. The numbers are based on Universal Service Administrative Co. projections of revenue at $10.428 billion, up $209 million sequentially. “Total USF revenues for 2020 will be $42.6 billion -- the lowest in the history of the USF,” said Gregg. “This represents a decline of $33.6 billion, or 44%, since revenues peaked in 2008.” Total projected USF demand for 2020 will be $345 million lower than in 2019, Gregg said. “Because of the continued decline in the USF revenue base, the average assessment factor for all of 2020 will be 23.37%, the highest average annual assessment factor ever.”