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Fee Explanation

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A variety of local, state and federal items are included on your billing when you have Shelby Broadband service. Depending on the service, taxes and fees may vary.

Federal Subscriber Line Charge
The Subscriber Line Charge is a fee paid to the local phone company that connects you to the telephone network. Local telephone companies recover some of the costs of telephone lines connected to homes or businesses through this monthly charge on your local telephone bill. Sometimes called the federal subscriber line charge, this fee is regulated and capped by the FCC, not by state Public Utility Commissions. For more information on the Federal Subscriber Line Charge, see the Federal Communication Commission website.
Federal Universal Service Fund Fee

The following explanation is taken verbatim from the FCC regarding the USF:

Because telephones provide a vital link to emergency services, to government services and to surrounding communities, it has been our nation's policy to promote telephone service to all households since this service began in the 1930s. 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."

The current incarnation of the FUSF was introduced into tax law created by United States Congress, via the FCC in 1998. Title 47, Code of Federal Regulations, Sections 36, 54, and 69.

The Federal Universal Service Fund surcharge is assessed on all interstate and international voice charges incurred by customers during the billing period. The exact surcharge rate is updated on a quarterly basis by FCC.

This surcharge is imposed for the purpose of providing telecommunications services at an affordable price to schools, libraries, rural health care providers, and low-income customers. The tax is a percentage of the interstate portion of the long distance charge on your bill. The surcharge is assessed to all telecommunications companies with interstate operations, including long distance carriers, wireless companies, pager companies and payphone companies. The Federal Communications Commission (FCC) regulates this surcharge.

This surcharge appears by many names. The following are some ways in which the FUSF charges may be represented on bills from other companies, including your local and long distance telephone carriers:

  • Federal Universal Service Fee
  • Federal Universal Service Fund
  • Federal USF - ADSL
  • FED USF - Special Access
  • Universal Connectivity Charge
  • Universal Service Carrier Charge
Regulatory Recovery Surcharge
A Regulatory Recovery Surcharge is assessed on all base voice charges and broadband services excluding other taxes and surcharges, to cover costs associated with payment of government imposed fees and to recover the costs of compliance with all government imposed regulatory requirements. It may include costs incurred in prior years that are not yet fully recovered. It is not a tax or charge which the government requires us to collect from its customers. This charge is subject to change from time to time as the cost of regulatory compliance changes.
e911 Service Fee
E911 fees are charges imposed on the customer pursuant to state or local law to finance Enhanced 911 services in a particular jurisdiction. Shelby Broadband is required to impose these fees on its customers and to remit the collected fees to the relevant governmental bodies. The proceeds from these fees are generally used to recover state or local government costs related to building and operating enhanced 911 services.
Sales Tax
As required on some services and products, Kentucky State Sales Tax of 6% is charged.
County Tax
As required on some services and products, Kentucky State Sales Tax of 6% is charged.
Municipal Franchise Fee
A fee assessed for the privilege of using the municipal public rights-of-way. This fee provides the municipality the funds needed to recover the cost of administering the access to the right-of-way. Typical costs included are for inspection, permit processing, engineering, traffic, and other such expenditures that the municipality incurs to manage the health and safety of its citizens, as utility companies work in the right-of-way.
State Utility Gross Receipts Tax
Telephone companies must pay tax on total revenue. This funds the Public Utility Commissions and other state services. This tax is usually a liability of the company (levied on the company's receipts). Generally, Verizon must pay this tax without regard to whether or not it is recovered from Verizon customers.