Regulatory rate change information

January 2025 Updates

Starting January 1, 2025, the FCC increased the Universal Service Fund (USF) charge for all markets from 35.8% to 36.3% on applicable qualified charges. This change will automatically show up on customer bills where applicable.

Below are some Frequently Asked Questions to help answer additional questions related to this change.

FAQs

What is the Universal Service Fund (USF)?

Federal Universal Service Fund (USF) Charge: FCC-regulated charge supports telecommunications services in schools, public libraries, and rural healthcare facilities. Subsidizes local service to high-cost areas and low-income customers. A monthly per-line surcharge helps keep local telephone rates affordable.

Wisconsin Universal Service Fund

FAQs

What is the Wisconsin Universal Service Fund (USF) surcharge?

This surcharge is assessed by Frontier on behalf of and under the authority of the Wisconsin Public Service Commission. This is not a Frontier assessed surcharge; it is a pass-through expense remitted to the State of Wisconsin.The Universal Service Fund (USF) provides funding that helps Wisconsin residents get essential and advanced telecommunications services. The USF funds a number of programs and grants to meet these goals including:

  • Lifeline which reduces the price of essential telecommunications service for low income customers.
  • The Broadband Grants Programs which helps get broadband service to all parts of Wisconsin and are partly funded by the USF.
  • The Telecommunications Equipment Purchase Program (TEPP) that helps disabled customers get the special equipment they need to use telecommunications services.

What are the rate changes of the Wisconsin Universal Service that take place in December 2022?

The increase is based on your service location and the applicable Regulatory jurisdiction:

  1. from $2.15 to $2.48 per line
  2. from $2.14 to $2.28 per line

Why did the Wisconsin State Universal Service Fund surcharge increase?

Frontier is making this annual adjustment under the authority of the Wisconsin Public Service based on State’s changing funding requirements of the various programs that State collected USF revenues support.

Texas Universal Service Fund Update

Recently, the Public Utility Commission of Texas decided to increase the assessment for the Texas Universal Service Fund from 3.3% to 24%. This change starts on August 1, 2022.

Below are some Frequently Asked Questions to help answer additional questions related to this change.

FAQs

What is the Texas State Universal Service Fund (USF) surcharge?

This is a surcharge that voice service providers assess to recover their required contributions to the Texas Universal Service Fund. The TX USF primarily supports a program that assists small telephone companies and co-ops providing service in rural areas. Frontier does not receive any support from this fund. The fund also supports the Specialized Telecommunications Assistance Program (STAP), Relay Texas, and lifeline.

How is the USF assessed on my bill?

The surcharge is assessed on intrastate voice charges — i.e., calling within Texas — and includes voice telephone service charges and intrastate long-distance services charges.

Why did the Texas Universal Service Fund surcharge increase?

The surcharge has been the subject of litigation in Texas brought by small telephone companies and co-ops who asserted that the Texas Public Utilities Commission had been underpaying them Universal Service Funds. Recently, a court agreed with them and ordered the Texas Public Utilities Commission to repay small telephone companies and co-ops the shortfall. To collect this shortfall, the Commission ordered all voice telecommunications providers to increase payments to the fund from 3.3% to 24%, resulting in a significantly higher consumer surcharge assessment.