These charges may show up on your bill

July 28, 2002

The following charges are likely to show up on your phone bill:

  • 911. Charge imposed by local governments to help pay for emergency services such as fire and rescue.

  • Federal Excise Tax. Federally-mandated 3 percent tax on all telecommunications services.

  • Subscriber Line Charge. The Federal Communications Commission caps the maximum price a company may charge on this federal fee started after the breakup of AT&T in 1984 to cover the costs of the local phone network.

  • Local Number Portability Charge. A fixed monthly charge that provides residential and business telephone customers with the ability to retain, at the same location, their existing local telephone numbers when switching from one local telephone service provider to another.

  • State & Local Municipal Tax. Charge imposed by state, local and municipal governments on goods and services.

  • Subscriber Line Charge. State charge mandated by some states' public service or utility commissions to compensate the local phone company for part of the cost of providing local telephone lines associated with state services.

  • Telecommunications Relay Services Charge. State charge that helps to pay for the relay center which transmits and translates calls for hearing-impaired and speech-impaired people.

    . Universal Service Fund. Also called the Universal Connectivity Fee, this charge helps make phone service affordable and available to all Americans. Congress has mandated that all telephone companies providing interstate service must contribute to the USF.


Source: Federal Communications Commission

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