---
title: USF Contribution Factor Continues its Rollercoaster Ride
date: 2012-06-14T05:57:15-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/usf-contribution-factor-continues-its-rollercoaster-ride"
section: Blog Posts
---
# USF Contribution Factor Continues its Rollercoaster Ride

 June 14, 2012

 

 

 

 

 

 

 After two quarters of near-18 percent contribution factors, the Universal Service Fund’s quarterly contribution factor is declining again. For the third quarter of 2012, the USF contribution factor [will decline to 15.7%](https://s3.amazonaws.com/cdn.kelleydrye.com/content/uploads/blogs/comm-law-monitor/2012/06/3Q-12-USF-Factor.pdf). This two percent decline again demonstrates the [volatility](http://telecomlawmonitor.lexblogplatformthree.com/2010/12/usf-roller-coaster-first-quarter-contribution-factor-to-be-15-5/) of the contribution factor. The change is due primarily to a $300 million increase in reportable revenues and a significant decline in Lifeline expenditures (presumably due to the Lifeline Reform Order).

But, [as Commissioner Pai points out](https://s3.amazonaws.com/cdn.kelleydrye.com/content/uploads/blogs/comm-law-monitor/2012/06/Pai-Statement.pdf), a 15% USF contribution factor is hardly good news. The drumbeat is sounding for USF reform. We hope the current FNPRM will lead to a reduction in USF costs for carriers and their end users.

 

 **Tags:** [contribution factor](https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/tags/contribution-factor), [Universal Service Fund](https://www.kelleydrye.com/viewpoints/blogs/commlaw-monitor/tags/universal-service-fund)

 

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