A Consumers
’ Guide to
Understanding Residential Charges
Navigating
Your
Phone
Bill
T elephone bills can sometimes be confusing. To help you understand
them, the Florida Public Service Commission has created this booklet to
define the many charges, fees and taxes you are likely to encounter on
your monthly bill. Be aware, however, that these charges can vary from
company to company, and from city to city.
To make sure you don’t pay for services you didn’t order or need, the
Florida Public Service Commission recommends that you take some
time to familiarize yourself with the charges on your telephone bill.
Check your bill every month and do not hesitate to ask for an explanation
of any charge you do not understand.
If there is a charge that you don’t understand, call your local phone
company. If you still don’t understand it, call the Florida Public Service
Commission toll-free at 1-800-342-3552. We’re here to assist you with
all of your utility needs.
Navigating
Your
Phone Bill
A Consumers
’ Guide to Understanding Residential Charges
LOCAL PHONE CHARGES
FCC Local Number Portability Line Charge
Sometimes listed as Number Portability Surcharge or Service Provider Number Portability Fee. Local phone
companies assess this fee to recover the costs associated with upgrading their systems to allow consumers to
retain their existing telephone numbers when switching to another local telephone company within the same
exchange. The Federal Communications Commission (FCC) allows the companies to charge this fee to cover
these costs, but does not require them to do so.
Residential Line Charge
Sometimes listed as Local Phone Service or Residential Line. This is the basic monthly charge for local phone
service. It may be a flat-rate fee or may be a flat rate plus usage charge.
Emergency 911 Charge
May also be listed as Emergency 911 Surcharge or Emergency Telephone Service. This fee is collected on
behalf of and paid to the city or county where a customer lives. The funds are used to pay for 911 emergency
services regardless of whether a household has ever made a 911 call.
FCC Charge for Network Access
Also known as a Subscriber Line Charge or Interstate Access Surcharge. This is a fee that the Federal
Communications Commission allows local phone companies to charge its customers to compensate the local
phone companies for part of the cost of providing a phone line. The FCC does not require companies to charge
this fee to the consumer and the money does not go to the FCC.
Telecommunications Access System Act Surcharge
Also known as the Telecommunications Relay Surcharge or Telecommunications Relay Service. This fee is
used to provide telecommunications devices and relay services for Florida residents with hearing or speech
impairments. The entire fee, which is used to pay for the devices and services, is remitted to the nonprofit
corporation established by Florida law.
Universal Service Fund Charge
Sometimes listed as Federal Universal Service Fund (USF) or FED USF. The purpose of this charge is to ensure
affordable access to telecommunications services for telephone customers with low incomes or who live in areas
where the cost of providing telephone service is high. It also provides discounts on telecommunications and
Internet access for schools and libraries, and advanced services for rural health care providers. Congress has
mandated that all telephone companies providing interstate service must contribute to the USF. Although not
required to do so by the FCC, many telephone companies choose to pass this charge on directly to the consumer.
Optional Services
These are “add-on” services chosen by the phone customer for features
such as call waiting, caller ID, call blocking, voice mail, etc.
LONG DISTANCE CHARGES
Long Distance Charges
Lists the total charges for all long distance calls. Itemized information on each call is usually provided on a
separate page. The long distance bill includes the date of each call, the originating phone number, the long
distance number called, the city where the long distance number is located, the starting time of the call, the
number of minutes each call lasted, and the total charge for each call. Consumers may choose to be billed
directly rather than have the long distance charges appear on the local telephone bill.
Universal Service Fund Charge
Sometimes listed as Federal Universal Service Fund (USF) or FED USF. The purpose of this charge is to ensure
affordable access to telecommunications services for telephone customers with low incomes or who live in areas
where the cost of providing telephone service is high. It also provides discounts on telecommunications and
Internet access for schools and libraries, and advanced services for rural health care providers. Congress has
mandated that all telephone companies providing interstate service must contribute to the USF. Although not
required to do so by the FCC, many telephone companies choose to pass this charge on directly to the consumer.
Minimum Usage Charge
Some long distance companies charge their customers a minimum monthly fee for long distance service, regard-
less of whether they make any long distance calls.
Calling Plan Charges
Most long distance companies offer calling plans ranging in price from a few dollars to $25 a month to give
consumers more options on long distance rates. Companies offering calling cards and dial-around plans (such
as those “10-10" plans you see advertised on TV) also may charge a monthly fee to use their services.
TAXES
Federal Excise Tax
This is a three-percent tax mandated by the federal government (not the Federal Communications Commission)
and imposed on local telephone service.
Communications Service Tax
This is a unified tax that replaced several local and state taxes that appeared previously on the telephone bill.
The Communications Services Tax appears on the bill as:
A. Local Communications Services Tax - This tax replaces what used to be billed as city/
local taxes, and franchise fees.
B. State Communications Services Tax - This tax replaces what used to be billed
as the Florida Gross Receipts Tax, state sales tax, and the local option tax.
Note: Some state and federal statutes, rules and regulations require that certain taxes and fees be included in the base for other taxes and fees.
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CALLING
Florida Public Service Commission
You may call the Florida Public Service Commission at
1-800-342-3552,
or fax your questions to 1-800-511-0809.
You may also contact the PSC via the following
E-mail address: contact@[Link].
See our Internet home page at [Link].
Or write to us:
Florida Public Service Commission
Division of Safety, Reliability and Consumer Assistance
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399-0850
AUGUST 2011