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A Guide to Your Phone Bill

About Your Phone Bill

Phone bills are not always easy to read and understand. This guide explains the services, charges, fees, and taxes you may see on your landline phone bill. View a sample phone bill.

Account Summary

This section should include:

  • The amount you owe
  • The payment due date
  • The company that is billing you.

Some phone companies include charges for services provided by other companies.

Local Phone Bill Section

This section contains the charges for local phone services.

  • Monthly Service Charge - This charge covers your local monthly phone service.
  • Optional Service Charges - These charges cover services with monthly fees, such as voice messaging, caller ID, and per-use services such as call trace and directory assistance.

Federal Charges

  • Federal Access Charge - The Federal Communications Commission (FCC) allows local phone companies to charge customers to help cover the cost of providing local phone service. The money goes to your local phone company.
     
  • Federal Universal Service Charge – The FCC allows local phone companies to add a universal service charge. This federal program provides financial support to low-income customers, customers living in high-cost areas, schools, libraries, and rural health care providers who receive internet and other advanced services. The amount of the charge can vary between companies.
     
  • Local Number Portability - The FCC allows local phone companies to get back certain costs for providing phone number portability to their customers. Local number portability (LNP) allows residential and business customers to retain, at the same location, their existing local phone numbers when switching from one local telephone service provider to another. The LNP Charge is a fixed, monthly charge. Local telephone companies may continue to assess this charge on their customers' telephone bills for five years from the date the local telephone company first began itemizing the charge on the bill.

Taxes

  • Enhanced 911 (E-911) - Each county must be able to find the caller's location when they dial 911. The costs for this service are covered through other state and county taxes. The state tax is 25 cents per month. The county tax amount can vary.
     
  • Other Taxes - Phone companies also collect federal, state, municipal utility, and sales taxes.
     
  • For a complete list of taxes, visit the Telecommunication Taxes and Funds web page.

Long-Distance Charges

While the long-distance section of your phone bill may vary, here are some basics:

  • Call Detail - This section lists your long-distance calls. It shows the time of day, call length, charge, phone number, and city called.
  • Monthly Plan Fee - Many long-distance companies offer lower per-minute rates but include a monthly plan fee.
  • Minimum Monthly Charge - Some long-distance companies require customers to pay a minimum monthly charge regardless of the amount of long-distance use.
  • Federal Universal Service Charge - Similar to the charge for your local service, this charge is also applied to your long-distance service.

Other Charges Section

Your phone company may list charges for services provided by other companies, such as calls to "900" numbers, internet services, website services, and line maintenance services. Listed by or near the charge should be the name and toll-free number of the company responsible for the charges.  

Guarding Against Unwanted Charges

To protect you from unnecessary or unwanted charges:

  • Review your bill every month. Look for unknown company names and calls or services that should not be there.

  • Keep a record of the phone services you have authorized and used. Ask questions about anything you do not understand.

  • Protect the use of your phone. You are responsible for charges made from your phone, even if the calls were made by someone outside your household.

  • Consider putting "blocks" on your phone use. You can ask your phone company to block long-distance and/or 900-number calls.

  • Carefully read all forms and promotional materials before signing up for phone service.

  • Act quickly on any matters that you dispute or question.

How to Dispute Phone Bill Charges

If you believe you have an incorrect charge for a service, contact the company responsible for the charge and your local phone company to dispute the charge. You can also ask your local phone company to reverse the disputed charges to the billing company. That company may still try to collect payment for the service in some other way.

To file a complaint with the commission: submit an Online Complaint Form; e-mail consumer@utc.wa.gov; or call toll-free 1-888-333-WUTC (9882).