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The FCC Managing Director issued a Public Notice on September 15, 2025, announcing the proposed Universal Service Fund ("USF") contribution factor for the fourth quarter of 2025 will be 38.1%, a 2.1% increase from last quarter's 36%. This announcement signifies a noteworthy escalation, setting a new record high at 38.1%, surpassing the previous peak of 36.3% recorded in the first quarter of 2025.
Any reforms of the USF contribution system will likely take months — and potentially longer — to materialize in any meaningful way. Therefore, the industry should anticipate the quarterly USF contribution factor remaining at stratospheric levels for the foreseeable future.
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