Deciphering Your Telephone Bill: A Detailed Breakdown

Understanding Common Charges on Your Phone Bill

Emergency Services Fee (911 Charge)

Local governments levy this fee to fund emergency response services, including fire departments and rescue operations. It's a crucial component ensuring that these life-saving services remain operational.

Federal Excise Tax

The Federal Excise Tax is a 3% tax applied to all telecommunications services, which includes local, long distance, and wireless bills. This tax is mandated by the federal government, but it is not collected by the Federal Communications Commission (FCC) (IRS).

Federal Subscriber Line Charge

Following the AT&T breakup in 1984, this charge was introduced to help cover the costs of maintaining the local phone network. It may appear under various names, such as "FCC Charge for Network Access" or "Federal Access Charge." The FCC sets a cap on this charge, which is not a government tax and does not contribute to government revenue (FCC).

Local Number Portability Charge (LNP)

The FCC permits local telephone companies to recover costs associated with providing customers the ability to keep their existing local phone numbers when switching providers. This fixed monthly charge can be billed for up to five years from when it first appears on customer bills. It is not a tax (FCC).

State & Local Municipal Tax

This tax is imposed by state, local, and municipal governments on goods and services, including telecommunications. In some states, it may be listed as a "gross receipts" tax.

State Subscriber Line Charge

Some state public service or utility commissions mandate this charge to compensate local phone companies for the cost of providing local telephone lines for state services, such as intrastate long distance and local exchange services.

Telecommunications Relay Services Charge

This state-imposed charge funds relay centers that facilitate calls for individuals with hearing or speech impairments, ensuring accessible communication for all.

Universal Service Fund (USF)

The USF, sometimes listed as the "Universal Connectivity Fee," supports the national policy of promoting telephone service accessibility since the 1930s. It helps make phone service affordable for all Americans, including those with low incomes, in high-cost areas, and supports schools, libraries, and rural healthcare providers. All interstate service providers contribute to the USF, and many pass these costs to customers as a line item charge (USAC).

FCC's Consumer Protection Measures

The FCC has established rules to help consumers understand their telephone bills and protect against fraud. Telephone bills must:

• Be clearly organized and easy to understand.
• Identify the service provider for each charge.
• Highlight new providers and the date of any changes.
• Provide full and non-misleading descriptions of charges.
• Indicate which charges, if unpaid, will not result in disconnection of basic local service.
• Offer a toll-free customer service number for inquiries and complaints. For electronic bills, an email address or website may be provided instead.
• Use standardized labels for certain federal regulatory charges, such as "local number portability" and subscriber line charges (FCC).

By familiarizing yourself with these charges and the FCC's consumer protection guidelines, you can better understand your telephone bill and ensure you're only paying for services you've authorized. If you ever encounter unfamiliar charges or need further clarification, don't hesitate to contact your service provider's customer service for assistance.