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GLOSSARY

 

USF (Universal Service Fund, Universal Service Charge)

The USF (Universal Service Fund) tax is a federal tax imposed on interstate and international usage. The USF was set up to provide telecommunications access to schools and colleges in rural or low income areas.

Also called the Universal Connectivity Fee, the USF helps to make phone service affordable and available to all Americans, including consumers with low incomes, those living in areas where the costs of providing telephone service is high, schools and libraries and rural health care providers. Congress has mandated that all telephone companies providing interstate service must contribute to the USF. Although not required to do so by the government, many carriers choose to pass their contribution costs on to their customers in the form of a line item, often called the "Federal Universal Service Fee" or "Universal Connectivity Fee."

You should pay attention to the USF tax, because it varies from one company to another.

 

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