Rategates´ Telecom Glossary

It's not easy to understand all technical terms which are used in the telecommunication industry. Therefore we created a list which you find below to let you know what some of those acronyms are perhaps what they mean. This list contains a comprehensive overview such these terms and is continuously developing. We would be very grateful if you could contact us if you have any comments or contributions.

Universal Connectivity Charge - See USF Universal Service Charge - See USF. Universal Service Fund Charge - See USF. USF - Aka: Universal Service Fund Charge, Universal Service Charge, CHCF-A & CHCF-B
This charge started on January 1, 1998 as part of the FCC overhaul of telephone fees. All companies that provide telephone service between states pay a set percentage of their previous year's billings. The charge is designed to ensure affordable access to telecommunications services for telephone customers with low incomes, telephone customers who live in areas where the cost of providing telephone service is extremely high, libraries, schools, and rural health care providers. Although all companies providing interstate telephone service are charged the same percentage of their billings, companies are allowed to recharge you for this in any way they see fit, and each company uses a different method to charge this carrier specific fee. It is normally not presented to you in such a way that you would think it is a competitive pricing issue. But it is! Some companies do not charge this fee at all, some charge a carrier specific flat fee, others charge a percentage of your interstate and international usage, while others charge a percentage of your entire bill. We offer full details of the amazing differences in this rate on the Fees Comparison page. Although the charge the companies pay is in essence a tax, the fee on your bill is carrier specific, and is NOT a set tax. The telephone company keeps any difference between the USF fees they collect and the charge they pay to the Universal Service Fund. Click here to visit the FCC and to see the current contribution factor.