Anatomy of a Phone Bill: Making Sense of Your Phone Bill

LOCAL BILL

Flat Monthly Charge: Varies by company, location, and choice of “premium” or “economy” calling area. Provides unlimited calling within your local calling area.

Other optional services: Such as Wire Maintenance Plans, Caller ID, Call Waiting, Voice Mail, 3-Way Calling, Call Forwarding, and Speed Dial. Do you really want these?

FCC Line Charge: $6.38-$6.50 allowed by FCC – part of service rate to local phone company to compensate for costs of providing access to long-distance network.

Local Number Portability Surcharge: $.23 goes to local company to recover its costs to upgrade facilities to allow customers to keep their telephone number when choosing a competitive local company or when they move.

Maine School and Library Fund: .7% of most instate services. Subsidizes Internet and Telecommunications services for Maine's Schools and Libraries.

Enhanced 911 Surcharge: $.50 required by Maine Legislature – pays for new E911 system that will allow emergency dispatch centers to locate address of caller.

Federal Universal Service Charge: currently 10.2% of FCC line charge (changes quarterly) Recovers required contribution to the federal universal service fund.

Maine Universal Service Charge: 1.39% of instate charges - helps to keep rural rates affordable by subsidizing rates of some of Maine’s independent rural local telephone companies.

Federal Tax: 3% Fed. Excise tax rate (originally to fund the Spanish-American War)

Maine Service Provider Tax: 5% sales tax rate. (Applies only to Federal Subscriber Line Charge Portion of Local Bill)

LONG-DISTANCE BILL

Instate Calls: Calls that stay within Maine but go beyond your local calling area (May be priced differently than interstate calls). Per-minute cost can be as low as 2.9 cents/min.

Interstate Calls: Calls that terminate in other states (may be priced differently than Maine calls). Per minute rates can be as low as 2.7 cents.

Calling Card Calls: Can be expensive – better to use a good prepaid calling account for as little as 2.9¢ per minute.

Directory Assistance Calls: Varies from free to $1.99 (Try 1800FREE411)

Monthly Fee: Flat fee added to your bill, regardless of usage. Avoid plans with monthly fee.

Monthly Minimum: Difference between the total cost of calls made and the minimum required by your specific calling plan. Avoid plans with minimums. (Verizon labels it as "shortfall charge".)

Universal Service Charge: Currently 11.7% (changes quarterly) of interstate and international portions of your bill. Recovers required contribution to the federal Universal Service Fund, which subsidizes high-cost rural phone companies, Internet and telecom connectivity for schools and libraries, phone service for low-income customers, and telecom costs of health care providers that use telemedicine.

Maine Universal Service Charge: 1.43% of instate charges

Payphone Access Fee: Up to $1.50 (varies by carrier) Compensates payphone owner when payphone is used for toll-free numbers, e.g., when you use your calling card from a payphone.

Maine School and Library Fund: .6% of instate charges

PICC: Presubscribed interexchange carrier charge - a per line access charge applicable only to multi-line business customers (as much as $4.35 per line).

Other regulatory or access surcharges: Some companies, such as AT&T, create their own surcharges. These are really just hidden rate increases.

Federal Tax: 3% HAS BEEN ELIMINATED IN 2006 – REFUNDS AVAILABLE GOING BACK 41 MONTHS OR STANDARD REFUND OF BETWEEN $30 AND $60 MAY BE CLAIMED BY INDIVIDUALS.

Maine Service Provider Tax: 5% (sales tax).

SITE INFORMATION

Anatomy of a Phone Bill: Making Sense of Your Phone Bill

LOCAL BILL

LONG-DISTANCE BILL