Why is there a USF Fee or Tax on my bill?
Why is there a USF Fee or Tax on my bill? Long distance
companies used to make money off of your USF Fee which is an FCC
mandated fee that goes to schools, roads etc... in your
community. AT&T used to charge 11.5% and MCI used to charge
12.3% for something the FCC used to charge them 5% for. Since
these companies were making a ton of money, off of what the
Public thought was a mandated fee, the FCC just changed the rule
so that all telephone companies are required by law to charge
the same amount, and give it all to the FCC. Read below to find
out what all the USF is used for.
"We also emphasize that carriers may not mark up federal
universal service line-item amounts above the contribution
factor. Thus, carriers may not, during the fourth quarter of
2003, recover through a federal universal service line item an
amount that exceeds the interstate telecommunications charges on
a customer