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Expect Higher Telecom Expenses

Expect Higher Telecom Expenses

Prepare to do some explaining – Your budget expense is going up, starting this month

December 18, 2013

You might be shocked to see that select telecom bills have increased this month, and you won’t be the only one. They’ve managed to keep it quiet until now, but carriers are hiking up surcharges like the notable increase of AT&T’s Federal Access Recovery Fee (aka FARF) for internet services.

Carriers typically reserve the right to change this fee without notice. And as of December 1, 2013, AT&T has increased the fee from 0.5 percent to a whopping 9.2 percent. This means, for example, a T1 that was priced at $201 ($200 base cost + $1 FARF) in September will cost you $218.40 this December. In this example, that’s an increase of $17.40, or 8.65 percent.

Don’t let the name mislead you – this FARF charge is not a mandated PUC, FCC tax or surcharge. The Federal Access Recovery charge is a fee that carriers may impose to help offset the internal costs of purchasing local access from the Local Exchange Carrier (LEC), including regulatory fees that LECs assess on AT&T.

According to AT&T’s website, this charge will apply to the price of the local access service component when integrated into the following enhanced services:

 

  • Managed Internet Service (MIS)
  • Private Network Transport (PNT) service
  • AT&T VPN Tunneling Service (AVTS)

 
The charge is also applicable to the local loop component of your circuits (T1, DS3 and Ethernet).

Don’t be caught unaware by a high carrier bill this month. Contact us.


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