This is starting to sound like a broken record. Once again, the USF contribution factor is poised to make a big jump upward to a new record high. Once again, we wonder here whether this will finally be the time that the FCC moves forward to reform the contribution side of the USF. With the volatility and high rates, one must wonder whether the current mechanism can satisfy the requirement that the USF fund be "specific, predictable and sufficient."
Here’s the bad news: according to a prominent USF analyst, the FCC will soon announce a first quarter 2012 contribution factor of 17.9%. This is an increase of over 2.5% from the current factor and by far is the highest that the USF rate has ever been.