Why do I have to pay a USF fee for long distance services?

Rebecca Atwood
Posted on Tuesday, November 15, 2005
by Rebecca Atwood , Customer Care Manager, Follow me on Twitter
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The USF fee (Universal Service Fund) is required by federal law to be charged by all long distance service providers.  The Federal Communications Commission (FCC) sets the USF rate each quarter.  The current rate can be found listed at the FCC website from here.

If the current USF fee is 9.5%, that means if you were to make $10.00 in long distance calls during the month, you would be charged a USF fee of $0.95 for that bill.

The fund offers support to telecommunication carriers in rural and high-cost areas, low-income consumers, schools, libraries and rural health care providers. 

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Long Distance - Did you know?

The USF fee is a mandatory fee implemented by the FCC. Companies can however charge a higher % than required. A higher USF fee can have a significant effect on your final bill. We include the USF Fee into our "Yearly Savings" formula which has a significant role in which plan has the highest Yearly Savings value.

This fee goes to High Cost/Low Income Fund, Schools, Libraries, Rural Health Care, and Telecommunications Relay Services or TRS Fund.

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