SBC phone service costs, example

~ SBC phone service costs, San Jose CA ~ SBC phone charges Federal Universal Service Fee ~ montly service fees
What does SBC actually charge?

San Jose CA (California)
Area code: 408
As of April/May 2005


ACTUAL COSTS: local phone service = $19.20 ; long distance phone service = $7.30 ; SBC Internet (DSL) = $28.50 (one year discount plan, standard rate $50)

Sample 1 -- Basic Local Service :     

"SBC California" (local service): $19.18 per month
advertised "monthly service" charge: $10.69
Tacked on fees (bullshit fees*): $7.75

*cost of doing business for SBC, not customers

"Zone 3 calls" (calls from local 408 to local 510)
0.34
 
Surcharges and Other Fees  
Federal Subscriber Line Charge
4.42
Rate Surcharge
CR 0.17
State Regulatory fee
0.01
Federal Universal Service Fee
0.49
Rate Change, Federal Universal Service Fee
0.02
   
Government Fees and Taxes  
CA High Cost Fund Surcharge - A:
0.02
CA High Cost Fund Surcharge - B:
0.27
California Teleconnect Fund Surcharge
0.02
Univeral Lifeline Telephone Service Surcharge
0.17
CA Relay Service and Communications Devices Fund
0.03
Local Government Fee
1.75
9-1-1 Emergency System
0.07
Federal
0.49
========================
======
Total Fees, Surcharges, and Taxes
$7.93
as a percentage of "Service" = tax rate of :
74.2%!

Why are these surcharges and fees B.S.? Because there is no independant error checking (they could be overcharging you for fees by pennies per month, adding up to millions of dollars of profit for them per year), and because this is the cost for them to do business. Other businesses are not allowed to say "This carton of milk costs $1.20, but oh, by the way, theres a "CA electricity fee" which allows us to recoup the taxes we pay for electricity, and a "transportation fee" which allows us to cover federal taxes on trucking." These things are called "the cost of doing business", and should be listed as part of the monthy fee that the phone company will charge you, not tacked on at the end.(What they're hoping is by listing the fees this way, you will complain to the federal and state government about the taxes.)

SBC Long Disatnce: $7

view bill detail
"Local, state, and federal charges: Your SBC Phone Bill Explained"


Example 2: AT&T Basic Long Distance

Basic rate monthly charge
$3.95
 
Fees  
Universal connectivity charge
For an explanation of this charge,
please call 1 800 532-2021 or visit
http://www.consumer.att.com/connectivity_charge
0.60
Regulatory assessment fee
This fee is not a tax or charge required by government. It helps AT&T recover expenses, including interstate access charges; property taxes; and costs of regulatory compliance and proceedings.
For information, call 1 800 854-9940.
1.49
   
Taxes and Surcharges  
CHCF-A, CHCF-B
[CA High Cost Fund Surcharge - A]
[CA High Cost Fund Surcharge - B]
0.04
Univeral Lifeline Telephone Service Surcharge
[Univ Lifeline Service Surcharge]
.03
Utility Users Tax
0.09
[9-1-1 surcharge]
9-1-1 Emergency System
0.01
Federal tax
0.18
========================
======
Total Fees, Surcharges, and Taxes
$2.44
as a percentage of "Service" = tax rate of :
61.8%

 


 




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