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Carrier Cost Recovery Charge:
 
Effective on January 1, 2012, a Carrier Cost Recovery Charge (CCRC) equals to 1.433 percent of all charges, excluding taxes, appearing on a Customer’s invoice will apply to telecommunications services subject to direct regulation by the Federal Communications Commission as well as to Interconnected VoIP service charges treated as interstate under FCC rules. This charge is being imposed to recover amounts incurred by our company for regulatory costs and for telecommunications services for the speech and hearing impaired, and will be listed as a separate line item on your invoice. The CCRC rate is subject to periodic adjustments by the company consistent with FCC rules and policies.
 
 
Universal Service Fund (USF) Surcharge:
 
The Carrier Cost Recovery Charge is separate from the USF surcharge. The USF surcharge applies to interstate telecommunication services as well as to Interconnected VoIP services treated as interstate under FCC rules. A Customer will not be required to pay the USF if it demonstrates to China Telecom Americas' reasonable satisfaction that it is acquiring the Company’s services for resale, i.e., not for its own internal use, and is contributing directly into the government’s Universal Service funding programs. This charge also will be listed as a separate line item on your invoice.
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