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Understanding the Telephone Federal Universal Service Fee Tax and Its Impact
Definition & Meaning
The Telephone Federal Universal Service Fee Tax refers to a charge that telecommunications carriers are required to pay into the Universal Service Fund (USF). Established by the Federal Communications Commission (FCC) in May 1997, this fund aims to ensure affordable telecommunications services for low-income individuals and residents in rural areas. The USF also supports internet access for eligible schools, libraries, and healthcare providers. Carriers may pass these costs onto customers through a separate charge, often called the Universal Connectivity Charge, which reflects the percentage set by the FCC on a quarterly basis.
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Legal Use & context
This term is primarily used in telecommunications law and regulatory compliance. It is relevant in contexts involving federal regulations, public service obligations, and telecommunications carrier responsibilities. Users may encounter this term when reviewing their phone bills or when seeking to understand the costs associated with telecommunications services. Legal forms related to telecommunications agreements or service contracts may also reference this fee.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
For instance, a telecommunications company may charge its customers an additional fee on their monthly bill to cover its contributions to the Universal Service Fund. This fee helps ensure that low-income families can access affordable phone services. Another example is a school in a rural area receiving discounts on internet access through the funds collected from these fees (hypothetical example).
Relevant laws & statutes
Key regulations governing the Universal Service Fund include:
The Telecommunications Act of 1996, which established the framework for the USF.
FCC regulations that outline the contributions and distribution of funds.
Common misunderstandings
What to do if this term applies to you
If you notice the Telephone Federal Universal Service Fee Tax on your bill, it is important to understand that this is a standard charge that supports essential services. If you have questions about the fee or believe it is incorrectly applied, consider contacting your telecommunications provider for clarification. Additionally, for those interested in understanding their rights or seeking potential reimbursements, exploring US Legal Forms' templates for telecommunications agreements may be beneficial. If issues persist, consulting a legal professional may be necessary.
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The Universal Service Fund is a federal program that provides financial support to ensure affordable telecommunications services for low-income and rural customers.
This charge reflects the contributions your telecommunications provider makes to the Universal Service Fund, which helps maintain affordable services.
No, this fee is mandatory for telecommunications carriers, and they are required to pass it on to customers.