Proposed Fourth Quarter 2016 Universal Service Contribution Factor is 17.4 Percent

In this Public Notice, the Office of Managing Director (OMD) announces that the proposed universal service contribution factor for the fourth quarter of 2016 will be 0.174 or 17.4 percent. Contributions to the federal universal service support mechanisms are determined using a quarterly contribution factor calculated by the Federal Communications Commission (Commission). The Commission calculates the quarterly contribution factor based on the ratio of total projected quarterly costs of the universal service support mechanisms to contributors’ total projected collected end-user interstate and international telecommunications revenues, net of projected contributions. USAC submitted projected collected end-user telecommunications revenues for October through December 2016 based on information contained in the Fourth Quarter 2016 Telecommunications Reporting Worksheet (FCC Form 499-Q).

The amount is as follows: Total Projected Collected Interstate and International End-User Telecommunications Revenues for Fourth Quarter 2016: $14.215126 billion. To determine the quarterly contribution base, we decrease the fourth quarter 2016 estimate of projected collected interstate and international end-user telecommunications revenues by the projected revenue requirement to account for circularity, and decrease the result by one percent to account for uncollectible contributions. Accordingly, the quarterly contribution base for the fourth quarter of 2016 is as follows: Adjusted Quarterly Contribution Base for Universal Service Support Mechanism Fourth Quarter 2016 Revenues - Projected Revenue Requirement - 1% ($14.218126 billion – $2.083590 billion) * 0.99 $12.013191 billion.