EUR 9538.00 For Business Accounts Only

New USF Contribution Factor Record, but DC to Play Same Game of USF Hot Potato

The Universal Service Administrative Corporation has posted its projection of USF revenues for 1Q25. Combining those revenues with the projected demand would result in the 1Q25 USF contribution rising from 35.8% to 37.4%, the highest in USF history. Investors might think this would cause key policy makers in government to say, “we can’t keep going on this way” and take action. The first part of that sentence is accurate. The second, however, should be modified to say, “urge others to take action.” In this note we quickly describe how the beltway types will likely react to the news, with a new round of an old game that resembles the school yard pastime of hot potato, at least until the second half of next year.