· Federal Excise Tax – TelAlaska isrequired to collect this tax, mandated by the federal government on localtelecommunications service.
· Subscriber Line Charge (SLC) – The SLC wasestablished by the Federal Communications Commission (FCC) to cover costs ofthe local phone network used to originate and terminate interstate longdistance calls that are not recovered through charges paid by long distancecompanies.
· Federal Universal Service Charge(FUSC) – The Universal Service Fund is a federal program funded by theFederal Universal Service Charge (FUSC). The program is designed to keep localphone service rates affordable in all areas of the United States, includinghigher cost rural areas. The fund also supports schools and libraries, ruralhealth care providers, and low income consumers. This rate may change quarterly.
· Access RecoveryCharge (ARC) – As permitted under the FCC’s rules (which became effective December 29,2011), the Access Recovery Charge enables TelAlaska to recover from end usercustomers a limited portion of revenues lost due to FCC mandated reductions inintercarrier payments.
Alaska State Charges
· Network Access Fee (NAF) – TheRegulatory Commission of Alaska (RCA) adopted a new Intrastate Access structureto lower the rates that long distance phone companies pay for using the localexchange companies’ networks. As a result of the change, the Commissioninstituted a Network Access Fee or NAF beginning April 1, 2005. Although notrequired, the surcharge provides an opportunity for long distance carriers toreduce in-state long distance calling rates.
· Enhanced 911 (E-911) EmergencySystem Surcharge – The E-911 system provides support for emergency communicationservices provided by municipalities. The surcharge is authorized by Alaska law(AS 29.35.131-29.35.173). The statutes provide that an E-911 surcharge of up to$2.00 per month per local access line and wireless telephone number may beimposed where an enhanced 911 system is utilized. TelAlaska remits the proceedsfrom these surcharges, less a small administrative fee, directly to themunicipalities that have adopted them by ordinance.
· Regulatory Cost Charge (RCC) – TheRegulatory Cost Charge is a surcharge applied to all regulated in-state retailcustomer billings to pay the local and long distance phone companies’ share ofthe budget of the Regulatory Commission of Alaska.
· Alaska Universal Service FundSurcharge (AUSF) – AUSF is a surcharge on a customer’s local and Intrastateservices to pay the state portion of the Lifeline Program. This program helpsqualified low income customers receive basic telephone service. The surchargealso provides financial support for certain high-cost rural companies andoffers limited assistance for the operation of public interest pay telephones.
· Universal Access Surcharge (UAS)for Telecommunications Relay Service – Alaska Statute 42.05.296requires that telephone companies provide service to the deaf, hard of hearingand speech impaired subscribers so that they can communicate by telephone. Theregulations require cost recovery through a surcharge added to the localservice rate.
· Local Sales Taxes – TelAlaska isrequired to collect local taxes on behalf of organized cities and boroughswithin Alaska.