Universal Service Fund (USF) and Administrative Cost Recovery Fee Charges

The Federal Communications Commission (FCC) requires Cincinnati Bell AnyDistance and all other long distance providers to contribute to the Federal Universal Service Fund (USF) at a rate determined by the FCC. The Federal USF is used to make phone service affordable and available to low-income subscribers and people living in areas where the costs of providing telephone service are high. In addition, the funds are used to provide discounted telephone service to eligible schools, libraries and rural health care providers. The USF contribution rate changes periodically to ensure adequate fund resources. Under the new rules, long distance providers that recover their contributions from their customers must adhere to very strict guidelines. As a result, the Universal Service Fee on your bill will now be determined by multiplying the contribution rate set by the FCC and the state-to-state calling portion of your bill. The charge may vary each month based on your state-to-state calling patterns and the rate that long distance providers are assessed by the FCC for the Federal USF. Effective October 1, 2007, the long distance provider contribution rate is 11 percent. Administrative Cost Recovery Fee recovers some of Cincinnati Bell AnyDistance's administrative costs, including the costs to comply with various regulatory requirements. This Fee may vary each month. These charges appear in the "Other Itemized Calls" portion of your Cincinnati Bell AnyDistance bill as "Universal Service Fund" and "Admin Recovery Fee."

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Minimum Usage Requirement and Fee

Basic Plan Customers are subject to a $6.95 monthly minimum usage requirement. There will be NO additional charge if you make at least $6.95 a month in qualifying calls. If you do not meet the minimum usage of $6.95 in qualifying calls, you will be charged the difference between what you use and $6.95. Qualifying calls include inbound & outbound direct dialed domestic and international long distance and Cincinnati Bell Any Distance Calling Card calls. Taxes, Universal Service Fund charges, Administrative Recovery Fees, and KY Intraconnection Fees do not contribute toward your monthly minimum usage requirement. The Minimum Usage Fee will appear in the "Other Itemized Calls" portion of your Cincinnati Bell Any Distance bill as "CBAD Basic Minimum," and helps Cincinnati Bell Any Distance recover a portion of the costs associated with providing you long distance service, including, but not limited to, billing, systems, and network maintenance costs. This applies beginning with your first complete monthly bill.

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Kentucky Intraconnection Fee

Kentucky residential customers will be billed a "KY Intraconnection Fee" of $.66 per line monthly. This monthly charge will appear on the "Other Itemized Calls" portion of your Cincinnati Bell Any Distance bill. This fee helps Cincinnati Bell Any Distance recover the costs charged by local telephone companies in your state to carry your Cincinnati Bell Any Distance in state long distance calls over their lines.

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Carrier Subscription Charge

Multi-line business customers will be billed a "Carrier Subscription Charge" of $1.50 per month per line. Centrex customers are billed $.17 per number per month. This charge recovers some of the administrative costs of providing service which allows Cincinnati Bell Long Distance to provide competitive per minute of use rates.

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