On September 12 the FCC issued a public notice announcing that
for the fourth quarter of 2012 the
universal service contribution factor will be 17.4%. That's an increase
over the previous quarter and almost 2% higher than it stood in the fourth
quarter of 2011.
As I explained in my blog post "New
USF Tax Adds Urgency to Reform Effort," "the contribution factor
translates into the line-item surcharge amount that is added to the interstate
long-distance portion of consumer’s monthly phone bills." So consumers
will be tapped with a 17.4% surcharge or "tax" on the long-distance part of their monthly
phone bill for the next few months.
Below is an updated chart showing the dramatic growth of the USF
tax burden on consumers in recent years:
This upward march in USF surcharges and the growth of the fund
highlight the need to carry forward the reforms that the FCC begun in its 2011 USF
Reform Order. FCC Chairman Julius Genachowski deserves credit for forging
ahead with that order, as I discuss in my blog post "Universal
Service Reforms Must Continue to be Implemented." Also critical is the
FCC's more recent notice on USF contribution reform. We will likely have more
to say about contribution reform in the months ahead.
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