USF contribution factor set at record 15.5%

While the industry continues to debate how to reform the Universal Service Fund, the Federal Communications Commission this week announced the USF contribution factor for the first quarter of 2011 would be 15.5%. That number represents the percentage of carriers’ interstate revenues that goes primarily toward the costs of delivering telecom service to high-cost areas, as well as to the schools and libraries, Lifeline/ Linkup and rural health care programs.