Taxes, Fees and Surcharges
Below is a summary of some of the charges that may appear on your TelAlaska bill each month.
Alaska Telecom Relay Charge – Alaska Statute 42.05.296 requires that telephone companies provide service to the deaf, hard of hearing and speech impaired subscribers so that they can communicate by telephone. The regulations require cost recovery through a surcharge added to the local service rate.
Alaska Universal Service Fund (AUSF) – AUSF is a surcharge on a customer’s local and Intrastate services. The surcharge provides support for certain high-cost rural areas, helping to keep local and long distance service rates affordable.
Carrier Cost Recovery/Access Recovery Charge (ARC) – As permitted under the FCC’s rules (which became effective December 29, 2011), the Access Recovery Charge enables TelAlaska to recover from end user customers a limited portion of revenues lost due to FCC mandated reductions in intercarrier payments.
Enhanced 911 (E-911) Emergency System Surcharge – The E-911 system provides support for emergency communication services 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 be imposed where an enhanced 911 system is utilized. TelAlaska remits the proceeds from these surcharges, less a small administrative fee, directly to the municipalities that have adopted them by ordinance.
FCC Regulatory Fee – Regulatory fees are mandated by Congress, pursuant to Section 9 of the Communications Act of 1934, as amended. Section 9 requires the Commission to collect regulatory fees to recover the regulatory costs associated with its enforcement, policy and rulemaking, user information, and international activities.
Federal Excise Tax – TelAlaska is required to collect this tax, mandated by the federal government on local telecommunications service.
Federal Universal Service Fund (FUSC) – The Universal Service Fund is a federal program funded by the Federal Universal Service Charge (FUSC). The program is designed to keep local phone service rates affordable in all areas of the United States, including higher cost rural areas. The fund also supports schools and libraries, rural health care providers, and low income consumers. This rate may change quarterly.
Local Sales Taxes – TelAlaska is required to collect local taxes on behalf of organized cities and boroughs within Alaska.
Network Access Fee (NAF) – The Regulatory Commission of Alaska (RCA) adopted a new Intrastate Access structure to lower the rates that long distance phone companies pay for using the local exchange companies’ networks. As a result of the change, the Commission instituted a Network Access Fee or NAF beginning April 1, 2005. Although not required, the surcharge provides an opportunity for long distance carriers to reduce in-state long distance calling rates.
Network Enhancement Fee – TelAlaska charges a network enhancement fee for network maintenance and upgrades.
Regulatory Cost Charge (RCC) – The Regulatory Cost Charge is a surcharge applied to all regulated in-state retail customer billings to pay the local and long distance phone companies’ share of the budget of the Regulatory Commission of Alaska.
Subscriber Line Charge (SLC) – The SLC was established by the Federal Communications Commission (FCC) to cover costs of the local phone network used to originate and terminate interstate long distance calls that are not recovered through charges paid by long distance companies.
