USF Contribution Factor Projected to Decrease in 1Q 2020, Says Gregg
The USF contribution factor will decline from 25 percent to 21.4 percent in the first quarter of next year, consultant Billy Gregg projected in an email Saturday. The Universal Services Administrative Co. published its demand projections for the USF programs…
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for Q1 Friday. Net projected demand for rural broadband high-cost programs will be down 13 percent from 4Q 2019, Gregg said. Lifeline demand is expected to be down 30 percent from 4Q. "In spite of the fact that the number of eligible households has remained relatively stable, Lifeline subscribers have fallen" from 12.8 million at the end of the Q3 2016 to 6.9 million at the end of the 3Q 2019, a decline of 46 percent in three years, Gregg said. He added an accurate calculation of the Q1 assessment will be possible once the USF revenue projections come out in early December.