Tuesday, April 13, 2010

Universal Service Fund Fee makes IP voice even more cost-effective

The Universal Service Fund fee for interstate and International calls will be raised from 11% 4th Quarter 2009 to 15.3% for second quarter 2010. This increase translates to lots of additional cost for call centers and companies with high state to state usage. And, it applies to wireless traffic, too.



The USF -- established by the Telecommunications Act of 1996 -- subsidizes phone service for schools, libraries, rural health care organization and low-income subscribers. This charge has been steadily increasing from 9.5% in the first quarter of 2009.



However, this fee does NOT apply to most carrier-provided IP voice. So, not is a good time to review current telecom expenditures and consider the switch from TDM to IP-based voice services.