Many Telecom Bills are Inflated by Optional Surcharges

Many people are not aware that Telecom Carriers put in surcharges that they don’t have to. Most people are aware that taxes and surcharges are a big part of their telecom bill, and many charges are simply charges mandated and passed on by the phone company.

For example if you have a long distance bill for $10,000 a month, you could pay $922 in additional charges, or $11,064 a year.

Below are some charges which increased one client’s bill by 9.22%. These charges are all optional and aren’t mandatory. We recommend people negotiating a contract insist telecom vendors be transparent about their fees, including surcharges. You can negotiate away many surcharges, and make them a fixed cost.

Administrative Expense Fees – 1.36% of your voice services is charged. They claim they need to charge it to comply with USF collection. One would think it would be pretty simple to collect – one doesn’t see Sales Tax Administrative Expense Fees.

Property Tax Allotment = 3.76% of whatever you spend. This is so you can help pay their property tax bill.

Federal Regulatory Fee = 4.10%

This is for the cost of complying with regulations and LNP. But it is charged on your Long Distance.

READ MORE: Why EVERY company (even small ones) should outsource Telecom Expense Management services

There are other optional surcharge. Just these three would increase the cost of your big long distance bills by 9.22%. These are all optional fees, and they put in their contract that they can charge whatever optional fees they like, and change the amount charged whenever they want. Insisting the charges be a fixed cost at least if more than fair.

Different vendors charge different amounts. Another Vendor charged 5.6% in one bill for the same fees.

This is why we recommend you be fully aware of your surcharges before signing a contract.

It is possible to save money and get better service – when you have the right partner acting as your personal advocate. (Source)

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