Check Bill - Federal Universal Service Fee Monthly Increase

Posts: 1 · New Forum Member Joined: Nov 25, 2007 Posts: 1

Has anyone noticed that the Federal Universal Service Fee has increased slightly each month? Check your Billing history.

Posts: 4694 · Vonage Forum **MVM** Joined: Aug 30, 2005 Posts: 4694

Yes, and I'm getting damned tired of being nickeled and dimed. My $15 plan now costs over $20.

Does anyone happen to know which of the add-ons are actual taxes paid to a government agency and which are pocketed by Vonage?

Posts: 847 · Vonage Forum Evangelist Joined: Nov 05, 2005 Posts: 847

My November bill increased 14 cent compared to my October bill for the Federal Universal Service fee.

Posts: 41 · Full Forum Member Joined: Nov 02, 2007 Posts: 41

Who Pays for Universal Service?

In general, all telecommunications companies that provide interstate telecommunications service contribute to the federal Universal Service Fund. These companies include wireline phone companies, wireless phone companies, paging service companies, and certain Voice over Internet Protocol (VoIP) providers. Their contributions support the four Universal Service programs: Lifeline/Link-Up, High-Cost, Schools and Libraries, and Rural Health Care.

Some consumers may notice a “Universal Service” line item on their telephone bills. This line item appears when a company chooses to recover its contributions directly from its customers by billing them this charge. The FCC does not require companies to pass on these costs to their customers. Each company makes a business decision about whether and how to recover Universal Service costs from its customers.

How Much Do Companies Contribute for Universal Service?

Companies contribute a certain percentage of the amount billed to their residential and business customers for interstate and international. The exact percentage that companies contribute is adjusted every quarter based on projected demand for Universal Service funding.

Posts: 203 · Vonage Forum Master Joined: Mar 04, 2006 Posts: 203

Steve48 wrote:

Yes, and I'm getting damned tired of being nickeled and dimed. My $15 plan now costs over $20.

Does anyone happen to know which of the add-ons are actual taxes paid to a government agency and which are pocketed by Vonage?

Sales taxes and 911 fees are mandatory. Even the 911 fee questionable. The other fees are not mandated however a company is allowed to charge them to "recover" certain expenses. In that case we should be able to demand proof from Vonage that there is no profit on the "recovery". Somehow I doubt they don't profit from it.

Check out some of the fees here:
http://www.fcc.gov/cgb/phonebills/samplePhonebill.html#Universal%20Connectivity%20Fee%20

Posts: 15 · Vonage Forum Associate Joined: Aug 19, 2007 Posts: 15

The charge is for low income phone service. Half of them have cell phones anyway!

Posts: 72 · Full Forum Member Joined: Mar 21, 2006 Posts: 72

Steve48 wrote:

Does anyone happen to know which of the add-ons are actual taxes paid to a government agency and which are pocketed by Vonage?

The regulatory recovery fee and the 911 fee are Vonage imposed fees. They keep the money, but supposedly use it for specific functions. All other fees and taxes are government mandated and get paid on by Vonage.

Posts: 4694 · Vonage Forum **MVM** Joined: Aug 30, 2005 Posts: 4694

Thanks to all. I have a "thing" about fees that are pocketed by a non-regulated service like Vonage. Regulated utilities pretty much have to itemize their bills as mandated by the regulators. Unregulated services can, and in my opinion should, include every dime that they pocket in the advertised basic price of the service. Doing otherwise is a scam to suggest that the cost of the service is less than it really is.

Posts: 1 · New Forum Member Joined: Feb 13, 2008 Posts: 1

Yes, mine has increased from $1.43 in November 2006 to $2.31 in February 2008! What the heck is up with that? Is the money really going to what it's supposed to or is Vonage keeping it?
Hmmmmm?????!?!????!!!!!!?????

godschoice wrote:

Has anyone noticed that the Federal Universal Service Fee has increased slightly each month? Check your Billing history.

Posts: 15 · Vonage Forum Associate Joined: Aug 19, 2007 Posts: 15

The charge assists the poor to maintain service. I guess they use their cellphone for long distance.