The proposed contribution factor for the first quarter of 2013 has been set to 16.1 percent.  This is down from last quarter which saw the percentage at 17.4%.  Each quarter the FCC, Congress and the Universal Service Administrative Company (USAC), administers the federal Universal Service Fund (USF). The percentage, also known as the contribution factor must be paid by all telecommunication companies.  The reason behind paying the USF is to offer support to low-income consumers, schools, libraries, rural areas, and much more.