There is a "test drive" period — Use it!
Cell phone companies offer minimum 14 day trial period before stiff early termination penalties kick in. Use the trial period to see how well the phone works in the areas where you would expect to use it. Without a trial run you may find that your chosen company has "dead zones" in those spots where you would most often use your phone. You will pay for what you use during the trial period and you may pay an activation fee.
How to Read Your Bill
Do you find yourself ready to pull out your hair when you open your wireless bill each month? Many consumers are frustrated by the lists of unknown or unclear terms and their associated fees. Here's some guidance based on our review of bills from most of the major cell phone companies.
Monthly Service Charges/Your Rate Plan (a.k.a., Service Plan, Monthly Plan Charges)
This is the service charge (excluding taxes) associated with your billing plan. Generally, you are either paying a monthly service charge for the wireless airtime covered under your contract, or you are paying a set rate for each minute that you use your wireless phone.
The Monthly Service Charge may include the cost of features packaged with your service, such as call forwarding, three-way calling, call waiting, caller ID, voicemail, text messaging, or these may be charged separately.
Additional Usage Charges
These are fees charged to your account for the minutes used beyond those allowed under your plan. A detailed description of these charges is usually included in the "Airtime Summary" and "Detailed Billing" sections of your bill.
Airtime Summary (a.k.a. Voice Airtime Summary, Monthly Usage Charges, Used Service, Home Charges)
The section summarizes charges for the total (non-roaming) time spent talking on your cell phone. It usually includes, or is preceded by, information on the minutes available in your plan and accounts for your usage of those minutes. Typically, unless you have used more minutes than those allowed under your plan, there will not be a charge beyond your monthly service charge listed here.
If you have used more minutes than those allocated by your plan (remember your minutes are allocated among time periods, such as Nights, Weekends, Daytime, etc.), you will be charged Additional Usage Charges.
Consult Detailed Billing for a detailed log of the calls you've made and their associated charges. Note: Some cell phone companies no longer send detailed monthly bills listing every call. That makes it harder for consumers to check the accuracy of their bills.
Detailed Billing (a.k.a., Detail of Current Activity, Voice Usage, Telecommunications Services Call Detail)
Detailed billing, which has become an option with some cell phone companies, is a list of the calls you've made and/or received and the related billing information. It usually includes the type of calls you've made and/or received as well as the date, time, the number called or the calling party, the duration of the call and the charges for each call. Note that not all service providers regularly provide their customers with detailed billing information. Some cell phone companies give consumers the option to receive detailed billing.
Roaming
You will be charged for roaming whenever you use your cell phone outside the "home" service area as defined by your wireless carrier. Usually, calls that are made or received while you are roaming will cost you more per-minute than other calls that you make. Also, long distance rates or daily access fees may apply to these calls.
Taxes, Surcharges and Fees
So you thought you purchased an affordable wireless plan but now you find those fees and charges are stretching your budget to the limit. Some of the taxes and surcharges are government-imposed fees--but not all. Some are added on by your cell phone company, and the amount charged is discretionary.
Federal, State, City, County, and District Taxes
Various taxing jurisdictions may levy taxes on wireless communications products and services. The methodology for assessing these taxes varies, but it is typically based on a percentage of the amount charged for your phone service, purchase or rental of equipment, and fees charged for reimbursement of federal program fees. Taxes are collected by your wireless provider and remitted to the appropriate taxing authority.
Federal Excise Tax
This is a three percent tax imposed by the federal government.
911
This fee is charged by local governments to help fund emergency services such as fire and rescue.
E911 (Enhanced 911) (a.k.a., Wireless 911 Surcharge)
This charge helps pay for Enhanced 911 (E911) services. E911, a new technology, will allow emergency response personnel to locate the wireless phone from which a person called 911.
Universal Service Fund (USF) Surcharge (a.k.a., Universal Connectivity Fee, Fed Universal Svc, Univ Serv Assessment)
The USF helps make phone service affordable and available to everyone, including schools, libraries, consumers with low incomes, rural health care providers, and those living in areas where the costs of providing telephone service is high. All telephone companies providing interstate service must contribute to this fund. Many cell phone companies pass these costs on to consumers in the form of a line item fee. Some states also impose a state universal service fund fee.
Number Pooling
Number pooling is a technique that the federal government has developed to more efficiently allocate telephone numbers. Cell phone companies are permitted by the FCC to recover from customers the costs associated with number pooling.
Number Portability Fee
Wireless phone companies must let consumers keep their phone numbers when switching cell phone companies. Some companies charge all customers a monthly fee to cover their expenses associated with offering "number portability."
Telecommunications Relay Services Charge (a.k.a., Telecommunications dual-party relay fund)
This charge helps to pay for the relay center that sends and translates calls for the hearing and speech-impaired.
Regulatory Programs Fee (a.k.a., Regulatory Cost Recovery Fee, Regulatory Assessment Fee, Federal Programs Cost Recovery)
Certain wireless companies consolidate charges associated with government programs into one fee called a "Regulatory Programs Fee." This is not a tax or government required charge. Since some cell phone companies are not specific as to exactly what this fee covers, we advise you to call your phone company for clarification of this fee.
State Fees
State and local taxes will vary depending upon where you live. If you have a question about a certain tax assessed, you can contact your state public utility commission or the taxing jurisdiction in question to find out more. Some states even have representative wireless phone bills online, with an explanation of the state and local tax calculations. Be sure that your billing address is up to date to ensure that you aren't being taxed by the wrong jurisdiction.
