4th Quarter USF Contribution Factor is 34.5 percent

The  Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for federal universal service support mechanisms for the fourth quarter of 2023. The Federal Communications Commission's Wireline Competition Bureau, in consultation with the FCC's Office of Managing Director, previously directed USAC to carry forward up to $211.50 million in unused funds from prior funding years to the extent necessary to satisfy funding year 2023 Rural Health Care program demand. Further, for the fourth quarter 2023, OMD instructed USAC to apply $73.76 million of the $211.50 million in unused funds to offset the $163.81 million projected Rural Health Care program demand. This offset reduces the fourth quarter 2023 contribution factor to a level below what the contribution factor would be based on USAC’s filings. The projected demand and expenses, after application of the Rural Health Care offset, is $2.07883 billion. The projected collected interstate and international end-user telecommunications revenues for the fourth quarter of 2023 is $8.172483 billion and the adjusted quarterly contribution base for universal support mechanism is $6.032716 billion. So, the proposed unadjusted contribution factor for the fourth quarter of 2023 is 34.5 percent. If the FCC takes no action regarding the projections of demand and administrative expenses and the proposed contribution factor within the 14-day period following release of this Public Notice, they shall be deemed approved by the FCC.