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What is the Universal Service Surcharge?

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Question

What is the Universal Service Surcharge?

Applies To

Monthly 8x8 billing statement or invoice.

Answer

The Universal Service Surcharge (also known as Universal Service Fee/Fund or USF) is a tax imposed to support the Federal Universal Service Fund (USF), which was established by the U.S. government to subsidize basic telephone service for people with low incomes and those who live in rural areas. It is also used to provide Internet connections, landline handsets, and mobile handsets to schools and libraries.

These costs include​ contributions to ​US federal and state government programs that promote universal service​, such as ​the ​​Telecommunications Relay Services (TRS) Fund.

The exact cost of this fee on your bill may periodically fluctuate as the carrier contribution rates, or "factors," for these programs are regularly reviewed and adjusted—sometimes dramatically from one period to the next.

Please refer to your contract terms in the "tax" section for more information.

Additional Information

Why did the USF charge on my bill change?

The percentage of interstate end-user revenues that telecommunications companies pay to the Universal Service Fund is called the contribution factor. The contribution factor changes four times a year (quarterly) and is increased or decreased depending on the needs of the Universal Service programs. Such changes will be subsequently reflected on your 8x8 bill.