As a result of the Telecommunications Act of 1996, the Federal Communications Commission has implemented charges that have directly impacted U.S. telecommunications users.
Local Telecommunications Fees and Surcharges
FCC Network Access Charge
This is a monthly charge assessed on each line within the household. This charge compensates for the Local Telephone Company’s cost of installation and maintenance of the components that link your home to the telephone network. The Network Access Charge is $6.95 for single residential line, $6.95 thereafter and $7.84 per business line. The Network Access Charge is sometimes known as End User Common Line (EUCL) charge or Subscriber Line Charge.
Cost of Manhole Ordinance $0.11
This fee covers AT&T’s cost to maintain phone service cables underground.
Emergency 911 Charge: $0.40
This fee subsidizes local public agencies for the total costs of establishing or upgrading, operating and maintaining an emergency telephone system.
Local Number Portability: $0.35
Allows customer to keep the same telephone number and transfer the number from one telephone carrier to another.
Telecommunication Relay Service Charge: $0.10
A surcharge to fund the relay center that assists the hearing and speech impaired with communicating to other telephone providers.
In-State access recovery fee
The Network Access Charge is $1.98 for single residential line and $2.49 per business line.
Universal Service: $.50
Carrier Recovery Cost
A Carrier Recovery surcharge applies to each phone number, $4.50 for business line and $1.50 for residential. IPFone uses this fee to pay our regulatory-related fees and expenses, including taxes, number portability charges, and related legal fees.
Telecommunication taxes (Local, Long Distance and VoIP)
Federal Excise Tax
Federal tax of 3% mandated by the federal government and imposed on local services billed separately from long distance service.
State Communications Service Tax
This tax is required by the State of Florida. It applies to the total monthly usage and includes a state rate of 6.8% plus a gross receipts tax rate of 2.37%, for a combined state communications services tax rate of 9.17%. Residential telephone service is exempt from the state portion of the communications services tax.
Local Communications Service Tax
This tax is required by the State of Florida. This tax applies to the total monthly usage. It is calculated based on where the call originates. Applicable tax rate may be up to 7.12%.
The following fees are mandated by the Federal Communications Commission (FCC). These charges apply to all persons and businesses using telephone services in the United States.
Universal Service Fund Fee (Tax)
This fee was established by the Federal Government. It provides relief for schools, libraries, and rural health care corporations. This fee applies to all interstate and international calls and VOIP services. The tax rate is set by FCC and changes quarterly.
Pre-Subscribed Interexchange Carrier Charge
This Charge allows the local telephone companies to charge a flat rate for every customer subscribed to a long distance carrier. A summary of the charges follows: Residential Customers – No charge. Business Customers – No charge for their primary line and $4.31 per month for each additional line.
VoIP Telecommunication Fees
This fee of $0.40 subsidizes local public agencies for the total costs of establishing or upgrading, operating and maintaining an emergency telephone system.
Regulatory Recovery Fee
A regulatory recovery surcharge of $0.99 applies to each line including DID’s, Virtual number and eFax. IPFone uses this fee to pay our regulatory-related fees and expenses, including taxes, number portability charges, and related legal fees.
PSTN Access Fee
This charge allows the local telephone companies to interconnect to the PSTN (Public Service Telephone Network) and collect a flat rate for every customer subscribed to a VoIP service. A summary of the charges follows: Residential Customers – Single Line $0.87 and Multiple Line $1.97. Business Customers – Up to five (5) Lines $1.87 and from 6 lines $8.97.
Telecommunication System Access Surcharge
Recovers a portion of the costs associated with the traffic delivery.
CPE Maintenance Fee
This fee is associated to hardware administration and firmware upgrades.
Presubscribed carrier charge
Is a charge that United States long distance telephone companies pay to incumbent local exchange carrier (ILEC) to help recover local loop costs.
Network access charge
This charge is used to pay network access charges accessed by local exchange companies. The Network Access Charge is only charged for business customers. A summary of the charges follows: Wi-Max line, T-1 Line $7.97 and Fiber Line $9.97