Effective on invoices issued in July, 2008, AT&T will apply the Universal Connectivity Charge (UCC) to the access line component of Frame Relay to ATM Service Interworking (including IP-enabled Frame Relay and ATM), INCS, and Enhanced VPN Services. The UCC allows AT&T to recover its contribution to USF associated with the interstate telecommunications service component of these enhanced services.

Federal Access Recovery Fee

The Federal Access Recovery Fee (FARF) is a charge designed to recover, in part, AT&T's costs of purchasing local access service from Local Exchange Carriers (LECs), which include regulatory fees that LECs assess on AT&T.

Effective with the first invoice after July 1, 2008, AT&T will begin billing a monthly Federal Access Recovery Fee (FARF) and applicable taxes. This charge will be based on the price of the local access service component that is integrated into the following enhanced services: Managed Internet Service (MIS), and/or Private Network Transport (PNT) service and AT&T VPN Tunneling Service (AVTS). The FARF percentage is subject to change.