Changes to your prepaid wireless service in California

Effective Date: January 1, 2019

The rules governing the surcharges imposed on your wireless service in California have recently changed. On November 13, 2018 the United States Court for the Northern District of California overturned the Prepaid Mobile Telephony Surcharges Collection Act (“Prepaid Collection Act”) under which surcharges have been collected through one Mobile Telephony Service (“MTS”) surcharge. On December 13, 2018, the California Public Utilities Commission issued Resolution T-17641 requiring carriers, beginning January 1, 2019 to collect and remit California prepaid surcharges under the laws and rules which existed prior to the Prepaid Collection Act.

These surcharges include: (1) Public Utilities Commission (PUC) reimbursement (user) fees and (2) the following PUC Public Purpose Program (PPP) surcharges:

  • Universal LifeLink Telephone Service (ULTS)
  • Relay Serve and Communications Device Fund (CRS/DDTP)
  • High Cost Fund A (CHCF-A)
  • High Cost Fund B (CHCF-B)
  • Telephone Fund (CTF)
  • Advanced Services Fund (CASF)

Sample surcharge calculation

 

Previously

Applied to 100% of your telecommunication charges

  

6.30%

Effective 1/1/2019

Applies to the intrastate portion of your telecommunication charges

    

Example:

Intrastate portion of your telecommunication charges

—

$10

  • Emergency Telephone Users (911) Surcharge

0.75%

$0.08

  • Universal LifeLink Telephone Service

0.75%

$0.08

  • Relay Serve and Communications Device Fund

0.50%

$0.05

  • High Cost Fund A

0.35%

$0.04

  • High Cost Fund B

0.00%

$ -

  • Telephone Fund

0.78%

$0.08

  • Advanced Services Fund

0.56%

$0.06

  • Public Utilities Commission (PUC) reimbursement user fee

0.33%

$0.03

Total 911, CPUC User Fee and PPP Surcharges

  

$0.82