Many consumers do not understand the various charges and items on their monthly phone bills. Here’s a quick reference that describes some of these charges:

• 911 – This charge is imposed by local governments to help pay for emergency services such as
  fire and rescue.

• Federal Excise Tax – This is a three percent tax mandated by the federal government (not the Federal Communications Commission (FCC)). It is imposed on all telecommunications services, including local, long distance and wireless bills.

• (Federal) Subscriber Line Charge – Instituted by the FCC after the break-up of AT&T in 1984, this charge recovers some of the costs of the telephone line connected to your home or business through a monthly charge on your local telephone bill. Mpower lists this on your bill as a "Federal Line Charge." The FCC caps the maximum price that a company may charge for this. This is not a government charge or tax.

• State & Local Municipal Tax – This charge is imposed by state, local and municipal governments on goods and services.

• Telecommunications Relay Services Charge – This state charge helps to pay for the relay center which transmits and translates calls for hearing-impaired and speech-impaired people.

 Other Charges 

• Universal Service Fund (USF) - Because telephones provide a vital link to emergency services, to government services and to surrounding communities, it has been our nation’s policy to promote telephone service to all households since this service began in the 1930s. The USF helps to make phone service affordable and available to all Americans, including consumers with low incomes, those living in areas where the costs of providing telephone service is high, schools and libraries and rural health care providers. Congress has mandated that all telephone companies providing interstate service must contribute to the USF. Although not required to do so by the government, many carriers choose to pass their contribution costs on to their customers. Mpower lists this on your bill as the "Federal Universal Service Fund."