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User:WWYITGD/Net Effective Teleconferencing Rate

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Net Effective Teleconferencing Rate is the actual rate an organization pays per minute for audio teleconferencing. This rate includes some, if not all of the following:


  • Federal, State, and Local Tax
  • Universal Service Fund
  • Regulatory Recovery Cost
  • Recording and Playback Fees
  • Miscellaneous Fees
  • Overage Fees

It is important to know these rates when comparing rates with potential vendors. These rates vary by state and can range from below 10% in states such as Montana and Nevada to as high as 30% in states like Nebraska, Texas, Maryland, and Virginia.


Here is a more detailed description of these fees:

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Description of Fees:

1. Federal State and Local Taxes Federal, State, and Local governments charge levy taxes on all telecommunication providers. These taxes vary by state. Cisco/Webex includes all taxes in its base rate and does not charge any taxes on top of the quoted per minute rate.

2. Universal Service Fund The Federal Communications Commission requires all telecommunications providers to contribute to the Universal Service Fund. Most providers then pass this charge along to their customers, despite not being required by law to do so. Cisco/Webex does not pass along this charge to its customers.

3. Regulatory Recovery Cost Many telecommunications providers will charge a "Regulatory Recovery Cost" or similarly titled fee to help offset the cost of complying with Federal regulations. This is a fee and not a tax or a government required charge. Cisco/Webex does not charge this or any other fee.

4. Recording and Playback Fees Many telecommunications providers charge a recording and playback fees for the recording and playback of audio and/or web conferences. Cisco/Webex allows its customers to record and playback audio and web conferences at no additional charge.

5. Miscellaneous Fees Most telecommunications providers levy fees and charges for a variety of service and features that are standard "no cost" to Cisco/Webex customers. These fees include, but are not limited to: A) Minimum per call fees which establishes a minimum charge for each call regardless of actual usage. B) Set-up and Disconnect fees which are a fixed charge for each participant on the call. Other fees include a charge to receive a monthly detailed invoice and surcharges for participants outside the continental U.S.

6. Overage Fees Many telecommunications provider charge Overage Fees to usage that exceeds a predetermined monthly amount. Cisco/Webex does not charge for any overage. All usage is charged at the quoted per minute rate. If a customer experiences overage month after month, the Cisco/Webex account management team is trained to re-evaluate the customers usage to determine if it is possible to re-rate the contract and lower the customer's per minute charge.


References

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Council on State Taxation Telecommunications Report
http://www.cost.org/search.aspx?searchtext=telecommunications


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