In telecom, profitability depends on tightly managing costs while complying with FCC regulations. One hidden drain on revenue comes from relying on safe harbor allocations when reporting traffic for the Universal Service Fund (USF) and related programs.
While safe harbor is convenient, it often causes carriers to overstate their interstate revenue and therefore overpay into federal contribution programs. With the FCC’s proposed contribution factor for Q4 2025 set at 38.1%, the financial impact of these overpayments is higher than ever.
