Proposed Third Quarter 2010 Universal Service Contribution Factor

Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for the third quarter of 2010. USAC estimates 3rd quarter interstate and international end-user telecommunications revenues at $17.575565 billion. To determine the quarterly contribution base, the FCC decreases the third quarter 2010 estimate of projected collected interstate and international end-user telecommunications revenues by the projected revenue requirement to account for circularity, and decreases the result by one percent to account for uncollectible contributions. Accordingly, the quarterly contribution base for the third quarter of 2010 is $15.340788 billion. The proposed contribution factor for the third quarter of 2010 is 13.6%.