All Telecommunications Carriers per FCC regulations are allowed to provision a Regulatory Recovery Fee. This fee is generally used to recover the costs of staying compliant. Essentially it is an administrative fee, and as such may be subject to indirect taxes and potentially other regulatory fees.
There is specific truth in billing rules that dictate what a carrier must disclose to their clients, and specific rules around what a carrier can and cannot include in a recovery fee. Additionally, there are specific guidelines and methods as to how the fee can be calculated.
The bottom line is that a carrier can create a revenue stream to recoup expenses and fees incurred as a compliant carrier. Most importantly, as with any billing item, specific books and records that support calculation methods, amounts collected, tax and fee liabilities must be created and maintained to support the client in an audit.
GSA has advised hundreds of clients on the proper calculation and implementation of recovery fees.