Q. I see that Telephone/Internet/Cable Companies rank #1 in complaints filled with BBB each year. Personally, I have issues with the monthly invoice, any suggestions for understanding?
A. You are correct; a majority of consumers have experienced pricing, product or service issues with communication companies. Every year, new smartphone models are released by major companies causing many to scramble to upgrade to the latest and greatest ... then follows the sticker shock. Your bill is higher than last month and you have no idea why. Along with every new phone purchase includes upgrade fees and monthly payments that many may not be aware of. BBB is here to help with a short description of some additional fees you may see in the monthly bill for your new phone and services.
Jim Winsett of the BBB. Breaking down your cell phone bill
Upgrade fee. When you purchase a new phone, your next bill will reflect a one-time charge for the upgrade service fee. This fee varies with each carrier, but is typically between $30 and $45.
Monthly charges. These are your standard cost of service fees associated with your phone plan for each device. They include your data plan charge and your installment payments for your phone if you enrolled for a payment program at the time of an upgrade. It is important to make note and remember what this contractual agreement is at signing.
Administrative fee. These are charges by carriers to cover costs such as cell site maintenance and interconnection between different carries (i.e. contacting someone from another wireless network.)
Federal Universal Service charge. Carriers pay a percentage of their revenue to the Universal Service Fund, administered by the Federal Communications Commission (FCC), to provide phone services to rural and low-income service areas, schools, libraries and rural hospitals.
Regulatory cost recovery charge. These fees may be incurred to cover government fees.
State cost-recovery fee. This fee is associated with covering franchise tax costs for the carrier.
911 service fee. This is a tax fee used to fund and maintain the emergency services communication in your area.
State and local taxes. These are your local and state charges for wireless communication services depending on your location.
Taxes and fees may be confusing, but as with any contract, BBB advises consumers to read and understand your service plan before you sign. If you see any unexpected change in fees or any changes to your account, contact your carrier immediately to notify and get the issue resolved. Therefore, it is important that consumers view their monthly invoice to assure accuracy.
Jim Winsett is president of the Better Business Bureau in Chattanooga.