FCC New Charges 10/01/2020

CCRF Rate Update - Oct 1, 2020

 

What is the new CCRF rate?

Beginning Oct 1, 2020 12 AM UTC, the Carrier Costs Recovery Fee (“CCRF”) will be assessed at a rate of 15%.

Why is this increase happening?

The primary driver is the FCC’s recent expansion of the contribution base for IP captioned telephone service (“CTS”), supported by the telecommunications relay service (“TRS”) Fund, to include intrastate voice communications services.  In the past, only interstate voice providers (telecommunications and VoIP) were required to contribute a portion of their end-user revenues to support the TRS Fund. The Report and Order extends that responsibility to providers with intrastate revenues. 

For more information on the expansion of support: https://www.fcc.gov/fcc-releases-report-and-order-ip-cts-funding

What is the CCRF?

The Carrier Cost Recovery Fee is used to defray the costs of taxes and surcharges incurred by the Company in conjunction with the sale and purchase of telecommunications.

Does this increase affect me if I am currently not being charged CCRF?

If you are not currently being charged the CCRF, then you will not be affected by the increase.

How does this change affect me if I am a reseller?

Properly documented resellers will not be charged CCRF.  Note: All resellers are required to recertify their exemptions annually.

Will individual accounts get affected or just Business accounts?

This will affect all accounts.

What changes are made in Invoices (Billing -> Transactions)?

Taxes and fees will be separated. CCRF charges will be recorded under fees.

When does this increase take an effect?

The CCRF charge increase will begin on Oct 1, 2020 12 AM UTC. 

What products are affected?

All products and services that are currently assessed CCRF. This includes, but is not limited to, voice calls, TN purchases, and recurring monthly fees for TNs.

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