| > | | | | This state charge helps to pay for the relay center |
| Background | | | | which transmits and translates calls for |
| Many consumers do not understand the various | | | | hearing-impaired and speech-impaired people. |
| charges and items on their monthly phone bills. | | | | Other Charges |
| Here’s a quick reference that describes some | | | | Universal Service Fund (USF) (Also called the Universal |
| of these charges: | | | | Connectivity Fee) - Because telephones provide a |
| 911 — This charge is imposed by local | | | | vital link to emergency services, to government |
| governments to help pay for emergency services | | | | services and to surrounding communities, it has been |
| such as fire and rescue. | | | | our nation’s policy to promote telephone |
| Federal Excise Tax — This is a three percent | | | | service to all households since this service began in |
| tax mandated by the federal government (not the | | | | the 1930s. The USF helps to make phone service |
| Federal Communications Commission (FCC). It is | | | | affordable and available to all Americans, including |
| imposed on all telecommunications services, including | | | | consumers with low incomes, those living in areas |
| local, long distance and wireless bills. | | | | where the costs of providing telephone service is |
| (Federal) Subscriber Line Charge — This was | | | | high, schools and libraries and rural health care |
| instituted after the break-up of AT&T in 1984 to | | | | providers. Congress has mandated that all telephone |
| cover the costs of the local phone network. This | | | | companies providing interstate service must |
| charge may appear as "FCC Charge for Network | | | | contribute to the USF. Although not required to do so |
| Access," "Federal Line Cost Charge," "Interstate | | | | by the government, many carriers choose to pass |
| Access Charge," "Federal Access Charge," "Interstate | | | | their contribution costs on to their customers in the |
| Single Line Charge," "Customer Line Charge" or | | | | form of a line item, often called the "Federal Universal |
| "FCC-Approved Customer Line Charge." The FCC | | | | Service Fee" or "Universal Connectivity Fee." |
| caps the maximum price that a company may charge | | | | FCC's Efforts to Help Consumers Understand Bills |
| for this. This is not a government charge or tax, and | | | | To ensure that telephone bills give consumers the |
| it does not end up in the government’s | | | | essential information they need to protect |
| treasury. | | | | themselves from fraud and to make informed |
| Local Number Portability Charge (LNP) — The | | | | choices, the FCC has issued the following rules and |
| FCC allows local telephone companies to recover | | | | guidelines that phone companies must follow when |
| certain costs for providing "telephone number | | | | creating their phone bills. The bills must: |
| portability" to its customers. This charge provides | | | | Be clearly organized... |
| residential and business telephone customers with the | | | | Identify the service provider associated with each |
| ability to retain, at the same location, their existing | | | | charge... |
| local telephone numbers when switching from one | | | | Highlight any new providers and indicate the date the |
| local telephone service provider to another. This is a | | | | change was made... |
| fixed, monthly charge. Local telephone companies | | | | Contain full and non-misleading descriptions of |
| may continue to assess this charge on their | | | | charges... |
| customers’ telephone bills for five years from | | | | Identify those charges for which failure to pay will |
| the date the local telephone company first began | | | | not result in the disconnection of a customer’s |
| itemizing the charge on the bill. This is not a tax. | | | | basic, local service... |
| State & Local Municipal Tax — This charge is | | | | Provide a toll-free number for customers to call for |
| imposed by state, local and municipal governments on | | | | customer service in order to lodge a complaint or to |
| goods and services. It may also appear as a "gross | | | | obtain information. If the customer does not receive |
| receipts" tax in some states. | | | | a paper telephone bill, but receives a bill by e-mail or |
| (State) Subscriber Line Charge — This charge | | | | over the Internet, the telephone company may |
| is mandated by some states’ public service or | | | | provide the customer with an e-mail address or Web |
| utility commissions to compensate the local phone | | | | site to inquire about charges... |
| company for part of the cost of providing local | | | | Use standardized labels when referring to certain line |
| telephone lines associated with state services, i.e., | | | | item charges relating to federal regulatory action, |
| intrastate long distance and local exchange services. | | | | such as "local number portability" and subscriber line |
| Telecommunications Relay Services Charge — | | | | charges. |