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What Exactly Are Those Mystery Fees and Charges That Appear Each Month on Your Phone Bill?

Nearly all the fees on your wireless or landline phone bill are unavoidable, but here’s an explanation of the common ones

Whether you have wireless service, a traditional landline, or both, your monthly bill can be loaded with fees and taxes that add up quickly. Some are federally regulated, some are state-imposed, and others are simply part of the cost of service. Understanding these charges can help you verify accuracy, spot errors, and avoid paying for things you do not need. In North Carolina, certain fees are set or collected under state authority, and assistance programs can offset some costs for eligible households.

Access charges

Access charges cover part of the cost of providing you with a local phone connection. These are not government taxes, but the Federal Communications Commission (FCC) sets a maximum amount providers can charge per line. Bills may list this as “Federal Access Charge,” “Customer Line Charge,” or “Interstate Access Charge.”

If you have multiple lines at the same location, the charge for each additional line may be higher than for the primary line. For intrastate calls (calls within North Carolina), the NC Utilities Commission regulates access rates (NC Utilities Commission).

Taxes

The federal excise tax of 3 percent applies only to local service billed separately from long-distance service. Many North Carolina customers no longer see this tax due to bundled billing.

State, county, and municipal governments may impose “gross receipts” or telecommunications sales taxes. In North Carolina, there is a state sales tax on telecommunications services (generally 7 percent, but can vary slightly depending on county sales tax rates) that appears on your bill.

Universal Service charges

Telecommunications providers must contribute to the federal Universal Service Fund (USF), which supports rural connectivity, the Lifeline program for low-income households, and services for schools and libraries. Providers often pass this cost to customers as a “Universal Service” line item, usually a small percentage of your bill.

In North Carolina, eligible households can apply for the Lifeline program to reduce their monthly bill by up to $9.25, or up to $34.25 for qualifying Tribal land residents (Lifeline Support).

911, LNP, and TRS charges

911 fees fund local emergency call centers and equipment upgrades. In North Carolina, the 911 fee is set by state law and is currently $1.35 per month per line, including wireless and VoIP lines (NC 911 Board).

Local Number Portability (LNP) fees cover costs when you keep your phone number while changing carriers. These are not taxes and are generally small.

Telecommunications Relay Service (TRS) fees fund services for people with hearing or speech disabilities. These charges are authorized under the Americans with Disabilities Act and administered by state relay programs, including North Carolina’s NC Relay.

Other common charges

• Directory assistance charges for 411 calls
• Monthly calling plan charges for unlimited minutes or long distance
• Operator-assisted call fees for calls placed through a live operator, usually at higher rates
• Feature charges for voicemail, caller ID, call waiting, call forwarding, or three-way calling

These service-related charges are set by the provider and are not government taxes. Review your plan periodically to remove features you do not use.

Landline-only charges

Some long-distance carriers impose a minimum monthly charge even if you make no long-distance calls. This “minimum use” fee can sometimes be avoided by switching carriers or consolidating services.

A “single bill” fee may apply if your local and long-distance charges are combined into one statement. Some companies waive this fee if you pay electronically.

Wireless-only charges

• Airtime overage charges apply if you exceed your plan’s included minutes
• Roaming charges are higher rates for calls outside your home network; some carriers also charge a daily roaming access fee
• Enhanced 911 (E911) fees support GPS location services for emergency responders
• Text messaging charges can be per message or a flat monthly fee for unlimited messaging
• Data overage charges apply when you exceed your monthly data allowance; can also include charges for app downloads, music, or ringtones
• Detailed billing fees are for itemized call, text, or data records beyond standard summaries

Avoiding unnecessary charges

While many charges are unavoidable, you can limit your bill by:

• Switching to an all-inclusive plan to avoid overages
• Using Wi-Fi for calls and data when possible
• Eliminating unused features
• Requesting electronic billing to waive paper statement fees
• Reviewing your bill monthly for unexpected or unauthorized charges

North Carolina consumer assistance

If you believe you have been overcharged or billed for unauthorized services (known as “cramming”), contact the NC Attorney General’s Consumer Protection Division at 1-877-5-NO-SCAM (1-877-566-7226). You can also file complaints with the FCC Consumer Complaint Center for billing issues that involve federal regulations.

For disputes involving intrastate telephone charges, you may contact the North Carolina Utilities Commission at 919-733-7328.

Low-income households may qualify for discounts on phone or internet service through the Lifeline program or the Affordable Connectivity Program (ACP).

Verifying and understanding your bill

Most carriers offer online billing portals where you can see itemized details and explanations for each charge. Reviewing your statement monthly and knowing the meaning of each fee will help ensure you are only paying what you owe. Keep copies of disputed bills and all correspondence if you decide to challenge a charge.

While you cannot eliminate all of these charges, understanding them, and knowing your rights under North Carolina and federal law—will help you manage costs and avoid paying for services you do not need.