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Federal Program Fee

The Federal Program Fee recovers the contributions that Vonage must make to the Federal Universal Service Fund (USF) under Federal Communications Commission (FCC) regulations.

The Federal USF is used to support:

  • Affordable telecommunications services to schools, libraries, and rural health care facilities.
  • Subsidies for telecommunications service in high-cost areas and for low-income households.
  • Telecommunications services for individuals with hearing and speech disabilities.

The Federal Program fee also recovers the contributions that Vonage must make to support Telecommunications Relay Service (TRS) under FCC regulations. TRS allows users who have hearing or speech disabilities to make telephone calls using a keyboard or other assistive device.

Finally, the Federal Program fee recovers regulatory fees that Vonage must pay to the FCC. These regulatory fees are used to fund the FCC's operations.

This fee may be increased or decreased up to four times a year (once per quarter), depending on the needs of the Universal Service programs.

Federal Universal Service applies to interstate and international telecommunications services. It does not apply to intrastate telecommunications services or non-telecommunications services such as customer premise equipment or voicemail.

Effective July 1, 2016, the rate is 12.6%.

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