Phone Bill Explained

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Learn what your phone bill means and how to save money!

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Phone Bill Terms Explained

Phone bill terms are sometimes difficult to understand and this causes many customers to just pay their bill. However, if you do this, you are at a high risk for fraudulent billing practices!

Understanding the terms on your phone bill will help you understand what you are paying for and help you find any charges that aren't suppose to be there.

Below are some common terms, taxes and charges that might be on your phone bill.

  • Municipal Charge: Charge by your local municipality to offset the costs of community services like local Emergency Services (911).
  • Number Portability Service Charge: A Federal Communication Commission (FCC) approved charge that pays the administration costs incurred by your local phone company in allowing you to switch long distance carriers.
  • Presubscribed Interexchange Carrier Charge (PICC): Long distance companies pay these charges to local telephone companies for access to there phone networks. The FCC regulates the price but doesn't require that the charges be passed on to the customers. Some long distance companies pass this cost onto you while others include it in their per-minute charges.
  • Subscriber Line Charge (SLC): This charge is similar to the PICC but is billed to you by your local phone company instead of your long distance carrier.
  • Universal Service Charge (USF): This fee is put into the Universal Service Fund, which helps make telephone service available to everyone. This includes low-income customers, customers in high cost rural areas and customers with disabilities. It has also been used to install Internet access for schools, libraries and hospitals.

If there are still charges you don't understand, you should contact your local phone company and ask. It maybe a legitimate charge or it could have been placed fraudulently.

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