Telecommunications
Glossary
- USF - Universal Service Fund Charge or Universal Service Charge
This charge started on January 1, 1998 as part of the FCC overhaul of
telephone fees. All companies that provide telephone service between
states pay a set percentage of their previous year's billings. The charge
is designed to ensure affordable access to telecommunications services
for telephone customers with low incomes, telephone customers who live
in areas where the cost of providing telephone service is extremely
high, libraries, schools, and rural health care providers. Although
all companies providing interstate telephone service are charged the
same percentage of their billings, companies are allowed to recharge
you for this in any way they see fit, and each company uses a different
method to charge this carrier specific fee. It is normally not presented
to you in such a way that you would think it is a competitive pricing
issue. But it is! Some companies do not charge this fee at all, some
charge a carrier specific flat fee, others charge a percentage of your
interstate and international usage, while others charge a percentage
of your entire bill. Although the charge the companies pay is in essence
a tax, the fee on your bill is carrier specific, and is NOT a set tax.
The telephone company keeps any difference between the USF fees they
collect and the charge they pay to the Universal Service Fund.
- See PICC
and USF Fees At A Glance (on our LDsite.Com
domain)
-
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