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klmayf's profile

Contributor

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1 Message

Wednesday, February 27th, 2019 3:02 PM

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how is the federal universal charge calculated?

how is the federal universal service charge calculated ?

on % of base price or?

Expert

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19.3K Messages

5 years ago

There's many articles on this if you search your question with your favorite search engine. There's also several topics on this if you'll search universal service charge on this forum.  MY understanding is it's not static but is recalculated quarterly and is a percentage of your bill. 

 

The following is taken from an Internet search and from a statement by Verizon:

Federal Universal Service Fund (USF) charge
A monthly, per-line surcharge paid by the customer to recover local companies' contribution to the Federal Universal Service Fund. This fund supports telecommunications and information services in schools, public libraries, and rural health-care facilities. The fund also subsidizes local service to high-cost areas and low-income customers. The FCC regulates this charge.

The Federal Universal Service Fund (FUSF) rate is reviewed quarterly. This fee helps to keep local telephone rates affordable for all customers and gives a discount to schools, libraries and low-income families. This charge will not be applied to Lifeline customers. Please visit the Lifeline web site to find out if you are eligible, or contact Verizon support.

New Member

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2 Messages

this didn't answer the question at all. what is the calculation used to determine the amount?

Contributor

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1 Message

5 years ago

My question regarding this charge pertains to my cell phone statement.  I have three phones on my family plan.  The issue of whether or not I have to pay the charge is not being debated.  My statement shows a Federal Universal Service Charge for the privilege of having a plan.  However, I am also charged an additional Federal Universal Service Charge on each one of my cell phone lines individually as well.  My question is:  WHY?  I am being charged four times for a three device family plan.  This just doesn't seem correct.  Full disclosure:  It's not only the Federal Universal Service Charge.  The State Telecommunications Excise Surcharge, the County Sales Tax and the NY State Sales Tax are being applied to my bill in four separate and distinct places.  Again, the issue isn't whether or not these charges have to be paid, I just want to know WHY I'm being charged four times for them on each bill.  

Expert

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19.3K Messages

5 years ago

Might want to post your question in the wireless forum.  Cell charges may be figured differently.  Or call billing. 

Contributor

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1 Message

5 years ago

Just got new service and have internet and home phone. I was quoted $65 a month with about 5 extra in taxes. I looked at my already here bill 4 days in and it's almost $20 more. I am a low income person why would I pay the universal fund when I need that money. I think I made a big mistake switching to AT&T.

New Member

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5 Messages

I am in the same situation as you are. Additionally, I was also told that the $99.00 installation fee would be waived but I was billed for that too. I've tried calling the 800 number, but keep ending up in the Philippines talking to people who can't answer any questions and say they cannot remove the installation charge once it is there or even give me a credit on it. My other issue is with the Federal Universal Service Charge which was $20.75 and is much more than it should be according to anything I've read. We already dumped our ATT cell phones because service was so bad, now I wish we had switched to a different carrier for our landline and internet service.

New Member

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2 Messages

I just switched to AT&T for home phone, which I only got because my wife insisted we keep a land line. The actual service has a bundled discounted price of $19.99.

However, I looked at my first bill and it’s almost double that amount! The Federal Universal Service Charge is $10.08 and the other fees and taxes are $7.01. So on my $19.99 service, I have $17.09 worth of fees. That is absolutely absurd.

Also, I was initially told that my installation would be free. Then I was told it would be $45. However, the bill shows $49.99.

New Member

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1 Message

3 years ago

My recollection on Universal Service and some other fees that used to be charge is that the FCC dictates what the fee to the CARRIER is, and it is a number based on average lines in use for a quarter.  The carrier then calculates what that fee would be per line and charges accordingly.  If I am not mistaken, the FCC does NOT mandate what carriers charge, that's why for some carriers there is NO Universal Service line item.  They elect to bury it in their cost of providing service, which is actually what it is.  No one truly "waives" the Universal Service charge.  You are paying SOMETHING toward it, whether indicated or not.  20+ years ago, all carriers charged it and they actually would have slightly different rates, but they would constantly adjust based on who was the HIGHEST.

Expert

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19.3K Messages

3 years ago

This is an old topic which is also in the wrong category for the information the OP was looking for.  Closing this topic to posting. 

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