Thanks Ken.

Yeah, it seems intentionally vague, and the price bump was definitely a
surprise based on how they handled this under previous ownership.

On Wed, Apr 1, 2026 at 11:08 PM Ken Hohhof <[email protected]> wrote:

> That’s above my pay grade, might need a lawyer to interpret.  I don’t have
> a good feeling about their use of the word mandate, it could be interpreted
> narrowly or broadly.  Like, if the city mandates they have to pay a fee to
> repave the road in front of their building, can they pass that on to you?
> Seems like there should be some delineation between their cost of doing
> business, and a tax or fee directly connected to your circuit.  Ideally it
> should ALL be their cost of business, with the possible exception of a tax
> they are expected to collect from you and remit to the government, like
> sales tax.
>
>
>
> But I am not a lawyer and didn’t stay at a Holiday Inn Express last
> night.  In fact I’m not very good at deciphering lawyer speak.
>
>
>
> *From:* AF <[email protected]> *On Behalf Of *Jason McKemie
> *Sent:* Wednesday, April 1, 2026 7:00 PM
> *To:* AnimalFarm Microwave Users Group <[email protected]>
> *Subject:* Re: [AFMUG] Wholesale Regulatory Fees
>
>
>
> New circuit with a company I have had circuits with for many years -
> although they did get acquired.
>
>
>
> The line on the MSA is:
>
>
>
> "We bill and collect regulatory surcharges, taxes and fees that are set by
> federal, state and local governments. These charges are subject to change
> from time to time. If local/state or federal government mandate any
> surcharges, taxes and fees they will be additional to the price below and
> billed monthly."
>
>
>
> There was a similar statement on previous MSAs, however there was no
> charge despite the same geographic endpoints on the transport circuits.
>
>
>
> On Wed, Apr 1, 2026, 6:50 PM Ken Hohhof <[email protected]> wrote:
>
> So this is a new circuit and they are disclosing the fees upfront?  And I
> assume it involves a term contract rather than month-to-month?
>
>
>
> Seems like the fact they call it a fee is irrelevant, add it to the
> circuit cost and that’s what they are proposing to charge.
>
>
>
> I guess my question would be, by calling it a fee, does that mean they can
> arbitrarily raise it at any time despite you having a contract price?
>
>
>
> Seems vaguely like the terms when leasing office space, it can be a gross
> lease, net lease, triple net, etc.
>
>
>
> *From:* AF <[email protected]> *On Behalf Of *Jason McKemie
> *Sent:* Wednesday, April 1, 2026 6:36 PM
> *To:* AnimalFarm Microwave Users Group <[email protected]>
> *Subject:* Re: [AFMUG] Wholesale Regulatory Fees
>
>
>
> So this is just certain providers tacking on whatever fees they feel like?
>
>
>
> I didn't pay anything when I had a transport on the state's network. I
> suppose I'm just wondering if there is a legit regulatory basis for this
> sort of thing or if it is arbitrarily defined by the provider.
>
>
>
>
>
>
>
>
>
> On Wed, Apr 1, 2026, 4:11 PM TJ Trout <[email protected]> wrote:
>
> Try buying a transport circuit directly from at&t, they charge 60% in fees!
>
>
>
> On Wed, Apr 1, 2026, 1:08 PM Josh Luthman <[email protected]>
> wrote:
>
> Fees are by definition something to add to the bottom line.  They are not
> taxes.  Fees and taxes are two different things.
>
>
>
> On Wed, Apr 1, 2026 at 3:06 PM Jason McKemie <
> [email protected]> wrote:
>
> I just had my upstream start charging "regulatory fees" for some new
> circuits.  The transport is via AT&T.  I've had multiple wholesale and ptp
> circuits over the years and have never paid this sort of fee.  They claim
> they previously absorbed this as a cost of doing business, but the new
> owners are re-structuring how this is handled.  The fees amount to almost
> 14% of the total transport.
>
>
>
> Is this an actual thing, or is it just a fake tax they're adding to pad
> their bottom line?
>
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