Taxes, Surcharges, and Fees

TNC Communications, Inc. (“TNC”) may adjust its rates and charges or impose additional rates and charges against Customer’s invoices to recover amounts that it, either directly or indirectly, pays to or is required by governmental or quasi-governmental authorities to collect from others to support statutory or regulatory programs, plus associated administrative costs. Examples of such programs include, but are not limited to, the Universal Service Fund, the Primary Interexchange Carrier Charge, Number portability agencies, property taxes, and compensation to payphone service providers for the use of their payphones to access TNC Toll-free Service. Taxes, Surcharges, and fees shown during the signup process or on the Bill Cycle to Date summaries represent estimated taxes only. Final taxes, fees, and surcharges will be calculated when an invoice is processed and may vary due to changes in usage, tax rates, or other factors. Examples of taxes, surcharges, or fees include, but are not limited to the following:

Federal Universal Service Fund (“USF”) Charge

Services provided under this Service Guide (not including the exempt Services listed below) are subject to monthly Federal Universal Service Fund (USF) Charge will be applied as a percentage against the Customer’s total net interstate and international charges, after application of all applicable discounts and credits and cannot be discounted.  Concerning charges billed on or after April 1, 2003, the USF percentage will be equal to (subject to rounding) the quarterly Universal Service Fund contribution factor established by the Federal Communications Commission and in effect for that billing period. The relevant quarterly contribution factor can be found at https://www.fcc.gov/omd/contribution-factor.html/. The charge will appear as a separate, identified line item on Customer’s invoice and the maximum applicable USF contribution factor from which the charge calculated found at the link provided above. The Federal Communications Commission establishes the Universal Service Fund contribution factor on a quarterly basis, and the FCC may change the factor on less than 14 days’ notice.
TNC will waive the USF Charge concerning specifically identified TNC charges to the extent that the Customer demonstrates to TNC’s reasonable satisfaction that:

the Customer either,

(a) has filed a Universal Service Worksheet with the Universal Service Administrator covering the twelfth month prior to the month for which the Customer seeks the waiver (i.e., to be eligible for a waiver in February 2001, the Customer must have filed a Universal Service Worksheet with the Universal Service Administrator covering February 2000), or

(b) was not required to file a Universal Service Worksheet covering such period, either because it was not then providing telecommunications Services or because it was then subject to the FCC’s de minimis exception to the FCC’s filing requirement;

the charges with respect to which the waiver is sought are for Services purchased by Customer for resale; and the Customer either (a) will file a Universal Service Worksheet with the Universal Service Administrator in which the reported billed revenues will include all billed revenues associated with the Customer’s resale of Services purchased from TNC for the period during which the waiver is sought or (b) will not be required to file a Universal Service Worksheet covering such period, because it will be subject to the FCC’s de minimis exception to the FCC’s filing requirement.

The Federal USF Charge will not be waived concerning:

·     charges for Services purchased by Customer for its use as an end-user; or

·     charges for which the bill date is on, before, or within thirty days after, the date on which the Customer applies for a waiver concerning those charges: or

·     charges for Services resold by the Customer, if the Customer (or another provider that buys Services directly or indirectly from the Customer) is not subject to direct universal service contribution requirements.

·     In the case of Customers who are billed by a Local Exchange Company other than TNC, TNC may, at its option, may mark up the charge of a particular call to account for USF instead of having the USF assessed as a separate line item on the bill.
Where charges not identified on a jurisdictional basis, for example, monthly recurring charges for rate plans under TNC Mobile Services, the USF rate will be applied against the amount of the charge that TNC reports as subject to the FCC’s quarterly Universal Service Fund contribution factor.

Administrative Expense Fee

A Fee equal to 1.50% of all applicable charges appearing on a customer’s invoice will apply to interstate and international telecommunications services subject to direct regulation by the FCC. This charge is imposed to recover a portion of internal costs and expenses incurred by TNC to implement, administer, and comply with federal regulations and programs. Customer is not required to pay the Administrative Expense Fee if it demonstrates to TNC’s reasonable satisfaction that it meets the requirements to be exempt from the Federal Universal Service Fund surcharge. Federal Universal Service Fund (FUSF) and other taxes, fees, and surcharges may apply to the fee.

 

State Universal Service Fund (USF)

TNC may also be required to contribute to State Universal Service Funds (“SUSF”). The funds may be used to assist in providing universal service and to support a variety of other programs at the state level. TNC may collect applicable charges from its end-user customers. These charges are permissible pass-through surcharges but are not taxes or charges mandated by the government.  The State Universal Service Fund is not subject to any waiver or exemption.

 

State Telecommunications Relay Services Fund (TRS)

Some states also require contributions to State Telecommunications Relay Services (“TRS”) Funds to offset the cost of providing local transmission services that provide hearing or speech challenged individuals with the ability to use certain communication services. Many states require TNC to remit this fee to the governing authority. TNC may collect applicable fees from customers and remit them to the relevant authorities. The State Telecommunications Relay Services Fund is not subject to any waiver or exemption.

 

State and Local Sales and Use Tax

All states, with limited exceptions, impose some form of state-level sales and use tax. The sales and use tax is generally imposed on the sale or use of tangible personal property and certain services. These taxes are intended to be passed on to the end-user/consumer.

 

In many states, local jurisdictions also impose a sales or use tax. In some instances, the local sales and use tax is administered by the local jurisdiction. In other instances, the state administers the local sales and use tax. Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.).

TNC may collect sales and/or use taxes as required by state and/or local law.

Communications Services Tax

Some state and local jurisdictions impose communications specific taxes on communication services in addition to or in lieu of sales or use tax. The communications services tax is intended to be pass on to the end-user/consumer. The rates for communications services taxes are usually different than the sales and use tax rates and vary by jurisdiction. Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc).

 

TNC may collect communication services taxes as required by applicable state and/or local law.

Gross Receipts Tax Allotment

When utility or telecommunications assessments, franchise fees, privilege, license, occupational, excise, or other similar taxes or fees, based on interstate receipts or assets are imposed by certain taxing jurisdictions upon TNC or upon 3rd party providers and passed on to TNC through or with interstate access charges, the amounts of such taxes or fees will be billed to Customers in such a taxing jurisdiction on a prorated, pass-through basis. The amount of charge that is prorated to each Customer’s bill is determined by the interstate telecommunications services provided to and billed to a Customer service location in such a taxing jurisdiction with the aggregate of such charges equal to the amount of the tax or fee imposed upon or passed on to TNC.

Local Utility Taxes

Local utility taxes are imposed by cities and counties in a select number of states. Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.).

 

TNC may pay local utility taxes and may collect them from customers when required (or permitted) by applicable state and/or local law.

Local License Taxes

Local license taxes are imposed by cities and counties in a limited number of states. Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.).

 

TNC may pay local license taxes and may collect them from customers when required (or permitted) by applicable state and/or local law.

Property Tax Surcharge

Services provided under this Service Guide are subject to a non-discountable monthly charge applied to recover property tax assessments and related fees imposed by taxing jurisdictional authorities upon local exchange carriers, and related charges incurred from TNC’s underlying carriers. The Property Tax Surcharge is equal to Customer’s total net charges for all Services and applicable Surcharges multiplied by 2.34%.

Federal Regulatory Fee

A Federal Regulatory Fee of 2.14% will be applied to all interstate and US billed international charges, excluding taxes, to recover amounts paid to the federal government for regulatory costs and telecommunications services for the hearing impaired (excludes Telecommunication Relay Services).

E911 Fees

In order to fund the provision of 911 emergency telephone service, state and local jurisdictions impose E911 fees on certain communications services. These fees are sometimes administered by the state department of revenue, but the majority of E911 fees are assessed and administered by local jurisdictions. E911 fees are intended to be passed on to the customer on the invoice.

 

TNC may collect E911 fees from customers when required by applicable state and/or local law.

Un-Provisioned ECC Surcharge
The Un-Provisioned ECC Surcharge (ECCS) is a non-exemptible surcharge that is applied when a 911 call comes from a customer or end-user and is routed to the Emergency Call Center service without any subscriber or address information provisioned. This Surcharge is applied when a customer fails to update or register their address with TNC or uses non-TNC number(s) and is routed through TNC’s Network from the Customer’s Demarcation or network. The fee is currently $150 per call and cannot be discounted. All TNC customers can be charged this fee.

Universal Cost Recovery Mechanism (UCRM) 

The Universal Cost Recovery Mechanism is a monthly charge to recover for access-related costs and municipality costs that cannot be recovered in a traditional line-item, per circuit/per service use basis including, but not limited to, increases due to FCC or other governmental or regulatory actions or judicial determinations made in connection with incumbent local exchange carrier charges for such circuits. The UCRM is $2.00 or 1.75% (whichever is higher) of the Customer’s total net charges, after application of all applicable discounts and credits and cannot be discounted.
This charge is not utilized to recover overhead costs of regulatory compliance. 

Snapback Charge

The Snapback Charge is a surcharge that is applied when a phone number is returned to the original carrier of a port-in or port-out from a customer or end-user as a result of, but not limited to; not prepared to receive or release the number(s) in question, from the result of an unauthorized port request, or fraud. The Snapback charge is $400 per phone number. This charge can apply to both numbers coming to TNC (port-in) as well as numbers going from TNC (port-out). 

Regulatory Compliance Fee 

Services provided under this Service Guide are subject to monthly recurring Regulatory Fee. The Regulatory Fee recovers a portion of TNC’s internal costs associated with the Federal Communications Commission’s Universal Service Fund.    As a result of a decision by the FCC on December 13, 2002, beginning on April 1, 2003, carriers may collect this type of expense, and the charge must reflect as a separate line item. The Regulatory Fee is 2.18% of the Customer’s total net charges, after application of all applicable discounts and credits and cannot be discounted.
TNC will waive a portion or all of the Regulatory Fee with respect to specifically identified TNC charges to the extent that the Customer demonstrates to TNC’s reasonable satisfaction that they have met the requirements to be exempt from the State and Federal Universal Service Fund contributions, State & Local taxes and other applicable charges managed by TNC Regulatory Fee. 

Network Build Recovery Surcharge

This surcharge may be assessed on a per-line or per-service basis to assist in the recovery of network build-out costs incurred by TNC, or as passed through by a local exchange carrier, or TNC’s underlying carrier.

AT&T Federal Access Recovery Fee (“FARF”) Surcharge

Since July 2008, AT&T enacted a surcharge called a “Federal Access Recovery Fee” (a.k.a. “FARF”) to offset the charges related to the delivery of local access services.   The surcharge only applies to the loop component (typically T-1/DS3/Ethernet access lines) provided by AT&T to connect to your TNC services.   The fee is currently 9.0% and is adjustable on thirty (30) days notice from AT&T.  All Wholesale and Retail clients are charged this fee.
Effective September 1, 2011, all in-service AT&T access lines of wholesale and retail TNC customers will bear a line item AT&T FARF surcharge. All non-AT&T access lines and non-Internet circuits remain unaffected.
Please reference the following web page on the Internet at the AT&T Service Guide Web Site at
https://www.corp.att.com/access_reform/faqs.html for an explanation of the charge.

 

Access Recovery Fee 

Access Recovery Fee is a non-exemptible monthly charge applied on a per-line basis, and any related charges incurred from TNC’s underlying carriers and is related to the Federal Intercarrier Compensation Rules that set the rates charged between carriers for telecommunications traffic. The Access Recovery Fee is equal to the total of applicable local access monthly charge multiplied by 4.99%. The private line Access Recovery Fee is equal to the sum of all private line charges multiplied by 2.49%.

Carrier Administration Fee

Carrier Administration Fee is a non-exemptible monthly charge applied to defray costs incurred from local telephone companies for call delivery to their end-users, as well as fees and assessments on network facilities and services, and any related charges incurred from TNC’s underlying carriers. The Carrier Administration Charge is equal to Customer’s total charges for all Services and applicable Surcharges, multiplied by 0.90%.

Unauthorized Carrier Change Charge

If (a) TNC receives a complaint that a Customer that is a telecommunications carrier (or that a telecommunications carrier on whose behalf the Customer has acted) has caused a change in a telecommunications subscriber’s PIC without prior valid authorization, (b) the Customer has submitted an order to change the subscriber’s PIC, and (c) the Customer fails to provide adequate proof of authorization for that carrier change within fifteen days after TNC makes a written request therefor, then the Customer will be required to pay an Unauthorized Carrier Change Charge for each such PIC change order, as listed below.
For each unauthorized order, per billed telephone number the following applies:
Service
Unauthorized Carrier Change Charge
networkTNC  Services
$250.00
For all other services
$150.00

Payphone Use Charge

In addition to all other charges for services under this Service Guide, a non-discountable payphone use charge of $0.56 shall apply to each coinless call which TNC can identify as placed from a domestic payphone. This charge is for the use of the payphone instrument to access TNC toll-free service.

PICC Fee

Customers of Voice Outbound 1+ Switched service provided under this Service Guide are subject to a Primary Interexchange Carrier Charge (“PICC”). This monthly recurring charge cannot be discounted and applies when TNC is not the underlying local exchange carrier via our networkTNC Business Line service. The PICC will apply per month per outbound switched line based on the type of underlying access line as follows:
Centrex:          $ 0.49
Business line:  $ 1.99
ISDN BRI:      $ 3.98
ISDN PRI:      $ 19.95

CAC Fee

Customers of networkTNC Business Line analog local service provided under this Service Guide are subject to a Carrier Access Charge (“CAC”). This monthly recurring charge cannot be discounted and will apply per month per local telephone line.
networkTNC Business Line:   $3.99

Payment Currency

All rates and charges will be quoted in United States dollars, billed in United States dollars, and are to be paid in United States dollars unless otherwise stated in writing in Customer contract.

Return Check Fee

An administrative charge may apply to a residence or business Customer bill for each occasion that a check, bank draft, or an electronic funds transfer item returned for the reason of insufficient funds or no account.
Administrative Charge Per Occasion = $35.00

Duplicate Bill Charge

Customer may request a paper copy of its billing statement, and such a request will be satisfied by TNC subject to Company retention policies and other billing information retention factors. Subject to a billing system or other limitations, a Duplicate Bill Charge may apply upon a Customer’s request for duplicate copies of their TNC billing statement in accordance with the charges specified below, unless stipulated differently in the Customer’s Service Agreement. This service is only available where billing and technology exist to fulfill Customer’s requests.
The Duplicate Bill Charge, as specified above, will not be applied in the following instances:

Customer subscribes to a service which provides additional copies of their billing statements;

Customer requests a copy of the billing statement because of non-receipt of the initial bill after a new connect, transfer or change of address orders;

Customer has not received a bill due to Company error in the address to which the billing statement mailed;

Customer requests a copy of the current monthly billing statement or its final bill.

Duplicate Bill Charge, per bill copy charge (mailed via standard US mail only)
Service Charge
Any invoice dated 12 months or earlier from the time of the request or not contained on TNC online billing portal.
$30.00

Restoration of Service Fee

Where allowed by law, TNC may implement a $75.00 service fee for restoration of service where payment delinquency has caused an interruption of service. This fee will apply to each Customer service per billing address that is being restored and will be included on the Customer’s monthly billing statement.

Fractional Charges and Credits

Computing Charges or Credits for a Fractional Part of a Month
When rates stated on a monthly basis, each month is considered to have 30 days for billing purposes. To determine fractional charges or credits for portions of months, count the days remaining in the billing period (including the 31st day of a 31-day month) starting with the day after the date on which the Service was furnished or discontinued. Divide that figure by 30 days. Multiply the resultant fraction by the monthly charge to arrive at the fractional charge or credit.

Computing Fractional Charges or Credits for a Rate Change

When a monthly rate is changed (increased or decreased) as a result of a Service Guide revision, the additional charge or credit for any fractional part of a month is calculated as follows:
Count the number of days remaining in the billing period (including the 31st day of a 31-day month) starting with the effective date of the rate change. Divide that figure by 30 days (billing month). Multiply the resultant fraction by the amount of the monthly rate change to arrive at the fractional charge or credit.

Rounding to the Nearest Cent

If the computed charges or credit for monthly charges include one-half cent or more, the fraction is rounded up to the next highest cent. Fractions of less than one-half cent are disregarded.

Charges Associated with Term Plan Contracts

Except as otherwise provided in a particular Term Plan or contract, Term Plan Customers who fail to sign another Term Plan contract with TNC on or before the date of Term Plan expiration, and who continue to use the TNC services after the Term Plan expiration date, TNC  will provide the Service under the terms and conditions set forth under the TNC Service Guide (as modified from time-to-time), and the rates and charges for the Service(s) shall be the then-in-effect month-to-month rates for those Services as modified from time-to-time. The TNC Service Guide found at https://www.tncconnected.com/service-guide, and the in-effect rates and charges can be found in this TNC Service Guide, as amended from time-to-time.

 

Late Payment Charge and Late Payment Collection Fee

This charge and this fee recover the costs associated with the administration and collection of unpaid balances and are not government-mandated. Late Payment Charges are assessed on all past due balances to the extent permitted by applicable law. Late Payment Charges accrue daily for the past due amount. In the case of a dispute, late payment charges will be assessed on any billed amounts determined, by TNC, as accurate at the time your dispute is resolved. Late Payment Collection Fee are assessed in the event TNC uses a collection agency or attorney, whether in-house or separate entity, to collect and recover on unpaid invoices, balances, or accounts owed to TNC by customer. The Late Payment Collection Fee shall equal a charge of 35% of the customer’s owed amount or the actual/reasonable costs and expenses (whichever is higher) of using a collection agency or attorney to recover the unpaid invoices, balances, or accounts. Should customer default on any payment(s) or be in default for any breach of the agreement between TNC and customer, TNC reserves the right to declare all remaining payments for the balance of the term of the contract immediately due and payable without notice to Applicant.

 

 

 

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This information is subject to change without notice. The information contained herein is intended only for TNC customers or their authorized representatives. Any unauthorized disclosure, copying, or distribution of this document, its contents, or any attachment is strictly prohibited. This document is intended for information purposes only and not promised or guaranteed to be current, completed, or up-to-date and should be in no way be taken as an indication of future results. This document is not intended to provide legal advice.

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