Telecommunications companies must pay a percentage of their U.S. interstate end-user revenues to the Universal Service Fund. This percentage is called the contribution factor. The contribution factor changes four times a year (quarterly) and is increased or decreased depending on the needs of the Universal Service programs.  Currently, the USF is earmarked to help fund broadband penetration across rural America.

This past March, the FCC-mandated USF contribution factor reached an all-time high of 15.3%.  Naturally, the cost will be passed on to consumers in the form of higher bills.   This graph, published by Telecom Law Monitor, shows the staggering increases of the USF over the past 10 years.