Proposed Third Quarter 2014 Universal Service Contribution Factor

CC Docket No. 96-45

In this Public Notice, the Office of Managing Director (OMD) announces that the proposed

universal service contribution factor for the third quarter of 2014 will be 0.157 or 15.7 percent.1

Rules for Calculating the Contribution Factor

Contributions to the federal universal service support mechanisms are determined using a

quarterly contribution factor calculated by the Federal Communications Commission (Commission).2

The Commission calculates the quarterly contribution factor based on the ratio of total projected quarterly

cost of the universal service support mechanisms to contributors’ total projected collected end-user

interstate and international telecommunications revenues, net of projected contributions.3

USAC Projections of Demand and Administrative Expenses

Pursuant to section 54.709(a)(3) of the Commission’s rules,4 the Universal Service

Administrative Company (USAC) submitted projections of demand and administrative expenses for the

third quarter of 2014.5

Accordingly, the projected demand and expenses are as follows:

1 See 47 C.F.R. § 54.709(a).

2 See id.

3 See 47 C.F.R. § 54.709(a)(2).

4 See 47 C.F.R. § 54.709(a)(3).

5 See Federal Universal Service Support Mechanisms Fund Size Projections for the Third Quarter 2014, available at

<http://www.universalservice.org/overview/ filings> (filed May 2, 2014) (USAC Filing for Third Quarter 2014

Projections). See also Federal Universal Service Support Mechanisms Quarterly Contribution Base for the Third

Quarter 2014, available at <http://www.universalservice.org/overview/ filings> (filed May 30, 2014) (USAC Filing

for Third Quarter 2014 Contribution Base).

http://www.fcc.gov/document/proposed-third-quarter-2014-universal-service-contribution-factor