What is the contribution factor?
The contribution factor is the percentage of end user revenue that will be contributed to the Universal Service Fund to support the universal service programs, as established by the FCC. The contribution factor changes every quarter.
What is the circularity factor?
The circularity factor is the percentage which lowers a filer’s contribution base to prevent the assessment of universal service fees on the pass-through Universal Service Fund charges that filers bill to their customers and are reported as revenue on the FCC Form 499.
After the contribution factor is applied to the quarterly contribution base, the circularity factor is then applied to reduce the contribution base resulting in a lower Universal Service Fund invoice. Like the contribution factor, the circularity factor is established by the FCC and changes every quarter.
The FCC releases a Public Notice each quarter to announce the newest contribution and circularity factors on its website.
|Applies to Quarter||Contribution Factor||Circularity Factor||Public Notice|
|October – December 2019||25.0%||19.8982%||DA 19-910|
|July – September 2019||24.4%||19.6552%||DA 19-559|
|April – June 2019||18.8%||15.8414%||DA 19-178|
|January – March 2019||20.0%||16.7999%||DA 18-1249|
|October – December 2018||20.1%||16.6091%||DA 18-944|
|July – September 2018||17.9%||15.1910%||DA 18-613|
|April – June 2018||18.4%||15.6293%||DA 18-234|
|January – March 2018||19.5%||16.2361%||DA 17-1203|
|October – December 2017||18.8%||15.7216%||DA 17-884|
|July – September 2017||17.1%||14.5692%||DA 17-580|
|April – June 2017||17.4%||15.0850%||DA 17-245|
|January – March 2017||16.7%||14.4192%||DA 16-1367|
A historical record of factors can be found on the FCC’s Contribution Factors & Quarterly Filings page.