Telecommunications Taxes and Fees
Federal Communications Program Fees
Federal Universal Service Fund (FUSF)
The Telecommunications Act of 1996 requires that DLS contribute to the Federal Universal Service Fund (“FUSF”) based on revenue derived from certain Services. The FUSF helps to make phone service affordable and available to all Americans, including consumers with low incomes; those living in areas where the cost of providing telephone service is high; public schools and libraries; and rural health care providers. 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 in order to sustain the FUSF System. As permitted by FCC regulations, DLS has opted to bill FUSF as a separate line item to end-user customers. Consistent with such regulations, the Company only bills FUSF line item charges in an amount equal to the quarterly contribution factor currently in effect. This is a permissible pass-through fee but is not a tax or charge mandated by the government. Please visit USAC’s Website for more information on the FCC’s Universal Service Fund.
Regulatory Recovery Fee (RRF)
Federal Telecommunications Relay Services (TRS) Fund
Local Number Portability Administration (LNPA)
North American Numbering Program Administration (NANPA)
A 2.75% fee is assessed on gross receipts for Internet access excluding taxes. The receipts from the fee are used to cover the costs of administering and maintaining lawful intercept facilities.
State and Local Taxes
State and Local E911/911 Fees
State and Local Regulatory Fees
State Telecommunications Relay Services (TRS) Funds
Some states also require contributions to state Telecommunications Relay Services (“TRS”) funds to offset the cost of providing local transmission services that provide hearing or speech challenged individuals with the ability to use a traditional telephone. Some states require DLS to collect this fee and remit it to the governing authority. DLS collects applicable fees from customers and remits them to the relevant authorities.