The Federal Universal Service Fund (FUSF) fee has increased 30% from 18.8% to 24.4% as of July 1 2019. The FUSF has increased our customers bills by several hundred dollars, so watch your budgets.
Remind me: what is this Federal Universal Service thingy again?
This “universal” fee is a fee established by the FCC (Federal Communications Commission) to make voice and data services available to a more “universal” audience. Think rural areas, hospitals, and schools. Voice providers are required to “contribute” a portion of their revenue (your paid fees) to this fund.
Why did the fees increase?
The contributions to the FUSF have been shrinking because fees comes only from voice services –either wireless or wireline. As users are now using less voice and more data, contributions are decreasing to the Fund. To offset this decreasing contribution the fees are increasing to continue to administering the program. This funding method and percentage change quarterly and may not be sustainable in the future with increasing data usages.
How should I manage my users and billing to lessen the blow?
The Fee applies to interstate and international calls, whether wireless or wireline, and in some cases interconnected VoIP. So, if users can reduce voice calls to other states or international voice calls, this will help to reduce the FUSF fees.
….Still protecting (and updating you on)your Wireless Rights……