Starting January 1, 2010, Cox customers will see a slight increase in their monthly bill. Cox is both charging a new fee, the Regulatory Cost Recovery fee, and raising an existing fee, the Universal Service Fund fee. Since we receive many calls from members inquiring about these two fees, we pulled together some helpful information from Cox's website about each fee.

Regulatory Cost Recovery Fee

According to Cox's website: "A regulatory cost recovery fee is common practice among most long distance service providers. Telephone carriers incur government imposed charges for long distance service, including Telecommunications Relay Service, FCC Assessment Fee and North American Numbering Plan charges, as well as additional costs associated with administering the FCC programs and compliance. Effective January 1, 2010, Cox Long Distance residential subscribers will be assessed a monthly Regulatory Cost Recovery Fee (RCRF) of $0.97 per line." Cox Public Telephone Surcharge

Bottom line: Starting January 1, 2010, Cox added a $0.97 fee to the bills of its long distance residential subscribers. 

Universal Service Fund

From Cox's website: "Pursuant to the Telecommunications Act of 1996, as implemented by the FCC, effective January 1, 1998, Cox is required to pay into a federally-mandated "Universal Service Fund" by means of "contribution factors" to be assessed on interstate and international revenues. The Universal Service Fund provides federally subsidized affordable access to modern telecommunications and information services for schools, libraries, and rural health care facilities which meet specific eligibility standards, as well as provide support to specific federal "Lifeline," "Link-Up," and High Cost Fund" programs used to subsidize local telephone service. In accordance with FCC guidelines set forth in Order No. 157, Cox has elected to pass-through these Universal Service Fund costs to all retail customers. The FCC calculates the contribution factor each quarter, and each quarter, Cox will adjust its surcharge to match the FCC’s rate." Cox Explanation of Universal Service Fund Fee

Bottom line: Effective the first quarter of 2010, the FCC raised the Universal Service Fund rate it charges Cox. Cox passes this cost to its customers.

Check out UCAN's Ultimate Consumer Resource Guide for information about other telephone taxes and surcharges, along with other great information about many consumer related problems. http://www.ucan.org/telecommunications/landline/telephone_taxes_and_surcharges