nanog mailing list archives

RE: Regulatory Recovery Surcharge for Canadian corporations


From: "Todd Grand" <tgrand () tgrand com>
Date: Tue, 14 Mar 2017 11:53:39 -0500

I still believe the onus is on them to justify the extension of these costs,
regardless of what was in the agreement.

Todd Grand

-----Original Message-----
From: Luke Guillory [mailto:lguillory () reservetele com] 
Sent: Tuesday, March 14, 2017 11:39 AM
To: Todd Grand <tgrand () tgrand com>
Cc: NANOG <nanog () nanog org>
Subject: Re: Regulatory Recovery Surcharge for Canadian corporations

I just went back over my email string with one of our transit providers
since I recalled submitting an exempt form for something. 

They added the Federal Universal Service Fund Surcharge to our transit link,
odd since this isn't a voice related circuit. This also wasn't on the quote
or anything else, sales tax is assumed but this wasn't. I'm sure it's buried
in an agreement somewhere. 

 



Sent from my iPad

On Mar 14, 2017, at 11:30 AM, Todd Grand <tgrand () tgrand com> wrote:

In reply to the group as my reply was only to Luke.


This is why I say, they should need to justify the extension of these
costs.
In my opinion a transit provider should not have any justification to
extend said costs.
One might suggest that the unjustified extension of these costs could be
construed as fraudulent charges.

Todd Grand


-----Original Message-----
From: Luke Guillory [mailto:lguillory () reservetele com]
Sent: Tuesday, March 14, 2017 11:08 AM
To: Todd Grand <tgrand () tgrand com>
Cc: Eric Dugas <edugas () unknowndevice ca>; Graham Johnston 
<johnstong () westmancom com>; NANOG <nanog () nanog org>
Subject: Re: Regulatory Recovery Surcharge for Canadian corporations

On transit though? We in the US pay all of these types of fees as well
though not on service outside of telephone.



Sent from my iPad



Luke Guillory
Network Operations Manager

Tel:    985.536.1212
Fax:    985.536.0300
Email:  lguillory () reservetele com

Reserve Telecommunications
100 RTC Dr
Reserve, LA 70084

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On Mar 14, 2017, at 10:58 AM, Todd Grand <tgrand () tgrand com> wrote:


These costs are related to federal, provincial and/or municipal 
mandates, programs and requirements such as provincial 9-1-1 fees, 
spectrum acquisition, licensing charges, and contribution charges to 
help subsidize telephone service in rural and remote areas. These 
costs are not taxes or amounts that the government requires carriers 
to collect. The specific amount of these costs can vary as the 
fees/costs of government mandates/programs change.

I would have them outline what regulatory costs they incur, as they 
have to justify the extension of these costs, or in my opinion it is 
a form of fraud.

Todd Grand


-----Original Message-----
From: NANOG [mailto:nanog-bounces+tgrand=tgrand.com () nanog org] On 
Behalf Of Eric Dugas
Sent: Tuesday, March 14, 2017 10:00 AM
To: Graham Johnston <johnstong () westmancom com>
Cc: NANOG <nanog () nanog org>
Subject: Re: Regulatory Recovery Surcharge for Canadian corporations

From what I've gathered so far, every other carriers that we use are 
either invoicing us from Canada or outside the US (e.g. Telia from 
Vancouver, BC and Cogent from Toronto, ON).



A couple of minutes after firing my first email, our rep called me to 
follow up. He'll escalate this as far as he can with his COO and CFO 
and suggested two scenarios.


On Mar 14 2017, at 10:41 am, Graham Johnston 
<johnstong () westmancom com>
wrote:

We don't explicitly pay a charge like this for the transit bandwidth 
we
purchase in Toronto from an international carrier, and I doubt that 
it is built into the cost without any mention of it. I've never heard 
of such a thing.



Graham Johnston
Network Planner
Westman Communications Group
204.717.2829
johnstong () westmancom com



\-----Original Message-----
From: NANOG [mailto:nanog-bounces () nanog org] On Behalf Of Eric Dugas
Sent: Tuesday, March 14, 2017 9:04 AM
To: NANOG
Subject: Regulatory Recovery Surcharge for Canadian corporations



I recently negotiated a new contract with a tier1 for IP transit in 
Canada
and
just got the invoice. I saw a "new" Regulatory Recovery Surcharge of 
10% the MRC (before taxes) that I've never seen before. Do any of my 
Canadian fellows on this list are paying this outrageous surcharge?







Other than saying "it's in the MSA", our rep, their tax and billing
department
are not useful at all. The actual rate is not specified anywhere in 
the MSA or in the contract.




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