Carrier Surcharge Recovery
Frequently Asked Questions
1. Why is Nitel charging the Carrier Surcharge Recovery to customers?
Answer: The surcharge covers the cost Nitel incurs from underlying carrier recovery fees. Surcharge recovery fees are both consistent with our customer agreements and standard in the telecom industry. These fees are allowed under our standard customer contracts and nearly all carriers recover these fees in the form of surcharge fees.
2. What fees are included in the Carrier Surcharge Recovery?
- Cost Recovery Fee – recovering regulatory fees and expenses incurred.
- Property Tax Surcharge – recovering state and local government levies on property assessed to Nitel carriers for facilities Nitel's carriers have built and maintained for the benefit of customers.
- Franchise Cost Recovery – local government franchise fees and right-of-way costs incurred for use of the public right-of-way
- Federal Access Recovery Fee - The Federal Access Recovery Fee (FARF) is a charge designed to recover, in part, costs of purchasing local access service from Local Exchange Carriers (LECs), which include regulatory fees that LECs assess.
3. Is the Carrier Surcharge Recovery a tax?
Answer: The Carrier Surcharge Recovery fee is not a tax. The surcharges for which Nitel seeks recovery through this surcharge are not exemptible. These surcharges apply to every customer unless prohibited by the customer contract.
4. How will the Carrier Surcharge Recovery appear on my invoice?
Answer: The Carrier Surcharge Recovery will be in the tax and surcharge section of the invoice.
5. Is the Carrier Surcharge Recovery subject to taxes?
Answer: Yes the fee is subject to the same taxes as the service.