Fees and Other Charges on Your Telecom Bill – What’s Legit?
Ask anybody who pays a telecom bill, be it an individual paying for one Plain Ole’ Telephone line or if you manage thousands of phone bills, the bits and pieces of the bill that can drive anybody crazy are those “other” fees. Usage fees (what?), government taxes (don’t like them but okay), Misc fees abound.
What is actually real and what is a nonsense charge that the phone company tacks on there to drive up your bills? You review and try and understand but most of the time, you throw your hands in the air and just pay the bill – right?
Every telecom provider works just a bit differently than the every other carrier, but believe it or not, every carrier is required to help consumers.
So, what is required of your telecommunications service provider? Let’s talk about long distance services….
ALL long distance carriers are mandated by the FCC to provide the consumer with information regarding your long distance telephone service. They must provide you with information regarding the rates, terms, and conditions of your service. If your carriers operates a web site, the FCC does require those carriers to provide that information on their website. Essentially, your long distance providers must show the consumers, what and how they charge for their services, rather than just telling the government what they’re doing. These companies “convey” this info to us through their web sites, our bills, and emails. Long distance companies often include information about changes in terms and rates, you’ve probably seen and thrown away those inserts with your bill – right?
Long distance providers are also required by the FCC to:
* Be clearly organized
* Identify the service provider associated with each charge;
* Highlight new service providers and indicate the date the provider change was made;
* Contain full and non-misleading descriptions of charges;
* Identify those charges for which failure to pay will not result in disconnection of the customer’s basic local service; and
* Provide a toll-free number for customers to call in order to lodge a complaint or obtain information. If the customer does not receive a paper telephone bill but instead accesses that bill only by e-mail or over the Internet, the telephone company may provide the customer with an e-mail address or Web site for inquiring about charges.
* Use standardized labels on bills when referring to certain line item charges relating to federal regulatory action
For example, let me give you the example of Minnesota. From the Minnesota Commerce website here are some of the required and non-standard charges you might see on a bill if you happen to live or have services in the land of 10,000 lakes:
Government Mandated Telephone Fees: The following fees are charged by all telephone companies and are not negotiable.
* Telephone Assistance Plan (TAP): $0.07 per line, per month (up from $.02 on August 1. 2008)
This fee is charged on each telephone line you have (not including cellular phones). It is used to help provide telephone service to Minnesota’s low-income residents.
* Telecommunications Access Minnesota (TAM): $0.06 per line, per month (increased from $0.03 on July 1, 2007)
This fee is charged on each line you have, including cell phones. It is used to fund programs that provide telephone service to people who are deaf, hard of hearing, or speech impaired.
* 9-1-1: $0.75 per line, per month (increased from $0.65 on July 1, 2009)
This fee appears on all telephone bills to operate Minnesota’s 9-1-1 emergency response system.
* State or local sales tax
These fees are assessed by state and/or local governments.
NON-Government Mandated Fees
The following fees may appear on your local phone bill and at first glance appear to be government mandated taxes, but in fact are not. These fees are not deposited into the local, state or federal government treasury, but are retained by the carrier. Some companies do not charge all these fees.
* Subscriber Line Charge (SLC)
Also called a “Federal Access Charge,” or “Interstate Access Charge,” the stated purpose of this fee is to help cover the local phone company’s costs of operating the local telephone network. This charge may be up to several dollars per month.
* Local Number Portability (LNP)
LNP allows you to keep your telephone number if you switch local telephone companies. An LNP charge on your bill pays for the cost of providing this service. LNP charges are temporary. According to FCC Rules, each company can collect the charge for five years after implementing the service.
* In-state Access Recovery Fee Several long distance carriers in Minnesota have recently added this charge to their phone bills. The stated purpose of this fee is to recover the companies’ expense of providing long distance service in Minnesota. You can avoid paying this extra charge by selecting one of the many long distance carriers that does not charge this fee.
* Universal Service Fund (USF) Carriers must pay a percentage of their revenues into a national fund that helps provide telephone service to poor and rural customers and is helping to link the nation’s schools, libraries, and rural hospitals to telecommunications networks, including the internet. Many carriers add a line item to consumer bills to recover this payment, but it is not government mandated and should not be in the “taxes” section of your bill. You may also see this charge on a cellular or pager bill.
What fees in addition to the above are “waivable”? What can you ask refunds for? In most cases we see, companies choose to ignore fighting any “extra fees” because they may feel they’re non-negotiable or required. In many cases did you know that you can be incorrectly charged a fee because somebody can mistype a request on your bill or worse, if you were to call in they could actually reclassify your services and tack on a whole string of extra charges? Yes – you bet it happens.
Let us know if you’ve seen anything funny on your bills – we’ll take a look at them – no charge and let you see for yourself what you could be overpaying for.
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Benny Carreon is the President and CEO of GrayBear Resources Group. GBR is a next-generation telecommunications consulting firm. We aren't a telephone company's vendor disguising itself as a consultant. We don't sell carrier products that would conflict with out mission - our goal is to work for our clients by reducing costs, streamlining services, eliminating waste and fraud while providing the least disruption to your business.
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