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Decoding Your Cell Phone Bill

By admin - Posted on July 15th, 2008

We Will Walk You through Surcharges Taxes and Extra Fees on Your Wireless Bill

You sign up for monthly cellular service contract with T-Mobile, Cingular, Verizon, Alltel, Nextel or Sprint PCS. You may be wondering why the phone bill is $80 per month instead of the advertised amount of $39.99 per month. Aren't you sick and tired of extra cost, add-on fees in Government surcharges? You are not alone! Many cellular consumers find difficult to deal with paying additional charges on their wireless phone bill. If you're fed up with paying an extra 20% to 30% for unexpected fees, please read this article. The average national tax that goes on a cell phone bill is 15 percent.

Click Here To Stop Cell Phone Companies from Nickeling and Diming you

I will translate your cell phone bill, offering advice and encouragement at every step and break it all down for you into four categories.

1) What Are the Monthly Service Charges?

Check Your Wireless Billing Plan Rate. This is the amount you saw advertised on the Internet, MAIL coupon or at your local telecom store. The cost of mobile service plans start at $19.99 per month to $299 per month. Additional charges and taxes are not included. On your bill statement, extra features such as: text messaging and roaming fees are not included.

2) What Are Additional Usage Charges?

In reality, when you receive your wireless service bill, the actual cost on your bill statement is substantially higher than the advertise cost of mobile carrier. Current Usage:


  • Monthly Minutes
  • Weekend/Night Featured Minutes
  • In -- Network Calling
  • Shared Minutes

Different telecommunications providers have different terms for how to define minutes in your billing.

Consumer rights and the foundation of taxpayers has taken Nextel to court for issuing bills that are unitemized unless the customers willing to forgo $2.50 per month. Find your wireless telephone bill and check it for accuracy.

Overage Charges:

This is the cost for going over your cell phone plan minutes. This can range from $.07 To $.47 per each minute you go over. Wireless companies charge you for incoming calls.

What about Roaming Charges?
When you make a call outside your designated home area, you are charged anywhere from 49 to $.69 per minute. If you're paying for local or regional plan, check with your cellular provider if you'll be billed for long-distance fees? This is why you need to read the terms and rates carefully before you sign the service contract. If the provider has empty holes and problems in their nationwide network, you can still find yourself being billed for roaming charges.

Text Messaging SMS
Wireless data services including the ability to send e-mails or text messages, browsing the web, downloading games, e-mailing photos, send short video messages, downloading ring tones all of which can add $.99 to $50 to your monthly phone bill depending how he heavy of the user you are?

411
Don't forget, it's not free to call the information line, the cost can be between $1.25 to $1.29.

3) Federal & State Taxes and Mandatory Fees

If you're a subscriber, you have no choice but to pay for these fees set by the government. Depending on what geographic area you are in in the amount of your wireless Bill, you have to pay state, city, county and district taxes. The federal taxes 3%. 911 and E911 is a service fee that you have to pay no matter what.

What Is Federal Universal Service Fund and Other Discretionary Surcharges?

Universal service means giving access to affordable telephone service to Native Americans, and rural communities that due to modern implications: are living below the poverty line or are handicapped, or other disabled groups. Read more about how universal service is funded by clicking www.hearusnow.org. There was a settlement with 32 states in the US, some of the cell phone companies are required to disclose online in retail outlets these discretionary fees. That's good news ! Beware, these fees you are charged sound like extra fees which are set by the government. But in reality, they are determined by the wireless providers to cover overhead expenses that they want to pass on to you as a consumer.


  • Number portability and pooling fees

    the government doesn't control how much you are charged by the carrier to recover their costs so you can retain the same cell phone number when you change plans or providers. So far, Verizon and Sprint PCS have eliminated number portability fees.
  • Regulatory Fees

    This will add another $.45 to $ 1.55 onto your phone bill.

Learn the truth about your mobile phone bill. Use this method above to gain a clear understanding in spite of being overwhelmed with other obligations. And remember, pay your bill on time, you don't want to end up paying late fees as well. Also, check to see if you'll be charged thirty five dollars or more for activation fees if you decide to sign up for a new cell phone service plan.

Updated July 15, 2008. Did you know the state of Maryland raised their sales tax fro 5 to 6 percent, now if you are a Maryland cell phone subscriber, you will be paying $1.20 in state tax from the $1.00 you were paying before.
Source: www.hearusnow.org, Consumer Reports Canada volume 70, #2

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