Local Telecommunications Fees and Surcharges
As a result of the Telecommunications Act of 1996, the Federal Communications Commission has implemented charges that have directly impacted U.S telecommunications users.
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 installation and maintenance cost of the components that link your home to the telephone network. The Network Access Charge is $6.95 for a single residential line, $6.95 after that, and $7.84 per business line. The Network Access Charge is sometimes known as the End User Common Line (EUCL) Charge or Subscriber Line Charge.
Cost of Manhole Ordinance: $0.11
This fee covers AT&T’s cost of maintaining 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 customers 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 $3.98 for a single residential line and $4.49 per business line.
Universal Service: $.50
Carrier Recovery Cost
A carrier Recovery surcharge applies to each phone number, $6.50 for the business line and $3.50 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
The federal government mandates a federal tax of 3% and is imposed on local services billed separately from long-distance services.
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 5.07% plus a gross receipts tax rate of 2.37% for a combined state communications services tax rate of 7.44%. 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. The 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 healthcare 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 Telecommunications Fees
State E911 Surcharge
This fee is imposed according to your service address by the corresponding state, county, or local authority for funding the total costs of establishing or upgrading, operating, and maintaining the 911 Emergency Telephone System.
E911 Service Fee
The E911 Service Fee is a monthly recurring fee that IPFone charges its VoIP customers for E911 service. The E911 Service Fee is charged at the same rate for all VOIP lines ordered by a customer. IPFone calculates the total E911 Service Fee billable to the customer each month based on the total number of lines.IPFone sets the per line rate for the E911 Service Fee at a level intended to allow it to recover the direct costs it incurs in providing E911 service.
Regulatory Recovery Fee
A regulatory recovery surcharge of $1.19 applies to each line, including DIDs, Virtual numbers, and eFax. IPFone uses this fee to pay to the Federal Government charges associated with regulatory fees and expenses, including telecommunications services for the impaired, 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 is as 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 with hardware administration and firmware upgrades.
Presubscribed Carrier Charge
This is a charge that United States long-distance telephone companies pay to incumbent local exchange carriers (ILEC) to help recover local loop costs.
Broadband Subscriber Line Charge
Broadband Subscriber Line Charge (BSLC) is a non-exemptible monthly charge for broadband Internet services to recover expenses related to carrier interconnection charges and copper plant maintenance. The BSLC equals the Customer’s total charges for applicable Services multiplied by 5.94%.