Taxes, Fees & Surcharges
In addition to the service charges billed for TeleGo Telecommunication Services, your monthly invoice may reflect surcharges, taxes, fees and other charges or any monetary additions to your Prepaid Balance, based on the type of service you have, customer-entered 9-digit zip code and your geographical location among other factors. Examples include, but are not limited to:
Federal Communications Program Fees
Federal Universal Service Fund (FUSF)
The FUSF contributes to helping phone service be affordable and available to all Americans, including those living in areas where the cost of providing telephone service is very costly, consumers with low incomes, rural health care providers and public schools and libraries. The Telecommunications Act of 1996 requires that Telego contribute to the Federal Universal Service Fund (“FUSF”) based on revenue derived from certain Services. The FCC delegates the administration of the FUSF to the Universal Service Administrative Company (“USAC”). Each quarter, USAC announces, and the FCC approves, a “contribution factor.” The contribution factor is a percentage of the total interstate/international end-user revenue that the carrier is responsible for contributing to the FUSF to sustain the FUSF System. As approved by FCC regulations, Telego has opted to bill FUSF as a separate line item to end-user customers. Accordingly, the Company only bills FUSF line item charges in an amount commensurate with the quarterly contribution factor presently in effect. This is a permissible pass-through fee but is not a charge or tax mandated by the government.
Please visit FCC’s Website for additional information on the FCC’s Universal Service Fund.
Cost Recovery Fee (CRF)
A charge entitled “Cost Recovery Fee” will apply to all monetary additions to a Customer’s Prepaid Balance and any other Services subject to direct regulation by the FCC, equal to 4.5 percent of Service charges appearing on a Customer’s invoice (excluding taxes). This charge is placed to recover costs incurred by Telego for fees, charges and/or contributions associated with telecommunications services for the sight and hearing impaired, local number portability, North American Numbering Plan administration, and administrative costs, fees and expenditures related to compliance with Federal regulatory programs and annual FCC regulatory fee obligations. This is a permissible pass-through fee but is not a tax or charge mandated by the government. For more information on the various programs supported by the CRF, please see below.
Federal Telecommunications Relay Services (TRS) Fund
The Telecommunications Relay Services (“TRS”) Fund was established by the FCC in 1993 to recompense TRS providers for the cost of providing interstate TRS services. TRS services are telephone transmission services that grant hearing or speech impaired individuals the ability to use a traditional telephone.
According to the FCC’s rules, Telego must contribute a percentage of its interstate and international end-user telecommunications services and Interconnected and Non Interconnected VoIP revenues to the TRS Fund. And, Telego may collect these fees from customers. The contribution percentage may be modified yearly.
Local Number Portability Administration (LNPA)
Local Number Portability (“LNP”) is the customer’s ability to keep existing phone numbers when switching to another service provider. Telego must provide LNP, as well as contribute to the FCC’s LNPA program, to diffuse the costs of administering LNP. Telego pays a proportionate share of the LNP costs in each region in which it has customers and operates. This fee is determined by region.
North American Numbering Program Administration (NANPA)
The North American Numbering Plan (“NANP”) is an integrated telephone numbering plan for the Public Switched Telephone Network (“PSTN”) serving numerous countries including the United States and its territories. It is executed through the North American Numbering Plan Administration (“NANPA”).
Under the FCC’s rules, Telego must contribute to the costs of numbering administration. Contributions are based on a percentage of Telego’s revenues from customers using international, intrastate and interstate services. The percentage varies yearly.
Annual Regulatory Fee
Telego, as an interstate service provider, must pay an annual regulatory fee to the FCC. This fee varies yearly.
State and Local Taxes
States, counties, cities, and special taxing districts may assess various taxes on Telego’s Services and/or phone sales. These may include specific taxes on communications services, gross receipts taxes, sales, use and excise taxes, property taxes and others. Telego collects applicable taxes from customers and remits them to the taxing authorities.
State and Local E911/911 Fees
Some states and localities require Telego to collect a fee to help subsidize state and local Enhanced 911 (E-911) Funds. These funds support local 911 and state services. These fees vary by locality and state. Telego collects these fees from customers and transmits them to the various fund administrators.
State and Local Regulatory Fees
State USF
Telego may also be required to support State Universal Service Funds. The funds may be used to provide assistance universal service and a variety of other programs at the state level. Telego collects applicable charges from customers. These charges are permissible pass-through fees but are not taxes or charges mandated by the government.
State Telecommunications Relay Services (TRS) Funds
Some states also require benefications to state Telecommunications Relay Services (“TRS”) funds to balance the cost of local transmission services providing hearing or speech challenged individuals with the ability to use a traditional telephone. Many states require Telego to collect this fee and remit it to the state. Telego collects applicable fees from customers and transmits them to the relevant authorities.