Office of the Ohio Consumers' Counsel

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Ohioans should be wary of extra telephone fees

A guest column by Janine Migden-Ostrander, Consumers' Counsel

When residential consumers first learned how to shop for telephone service, they were advised to compare the advertised long-distance rates as well as determine when they would be making most of their calls - during the day or in the evening. Today, some customers have choices in local and long-distance telephone providers, but need to be wary of extra fees being imposed by some companies.

Some local and long-distance companies have added surcharges on customers' bills that are not taxes or government mandated fees. For example, a company may put a "Regulatory Assessment Charge" on each bill. By adding these types of new charges, the companies can avoid having to raise the monthly price of their local telephone plans or the advertised per-minute rate of their long-distance service.

With details about the new charges typically included in an advertisement's fine print, consumers may not discover the fees until they receive their first bill in the mail. Current customers may notice these same types of charges being added to their monthly bills, causing the overall price of their service to increase.

Now is a good time for consumers to evaluate whether their current local and long-distance plans best meet their needs. There are several tips provided by the Office of the Ohio Consumers' Counsel, the residential utility consumer advocate, to help make an educated decision when shopping for a telephone plan.

While researching offers, consumers should ask telephone companies about any monthly surcharges. Regardless of provider, customers should expect to pay mandatory state and federal taxes and a universal service fee. For local service, a subscriber line charge (also called a federal access charge), 9-1-1 emergency system fee and number portability charge are typically added. Other charges should be questioned and may not be required or approved by state or federal regulators. Some extra fees may simply recover business costs for the company without providing customers any additional benefits. Other charges may relate to convenience options such as having customers' long-distance charges appear on their local telephone bills. Before signing up for a new plan, ask the telephone company to estimate what the total bill would be each month, including all fees and taxes.

If a particular offer includes a promotional rate, consumers should find out if the price of the plan will increase after a certain period of time and what the new rate will be. Those shopping for long-distance telephone service also should look for any monthly service fees or minimum usage charges that may apply. Over the past two years, several companies have increased the monthly service fees by as much as $1 per month. If a consumer makes few, or no, long-distance calls, it may make sense to find a plan without these types of fees.

Finally, new and current customers should review their bills each month for unfamiliar charges and notices of additional fees about to go into effect. Ask the company for an explanation of any charges that are not understood.

For more tips or questions about their utility service, consumers can contact the OCC at 1-877-PICKOCC (1-877-742-5622) or at www.pickocc.org. The OCC offers many free publications, including its "Comparing Your Local Telephone Choices" chart and "Choosing a Long-Distance Provider" fact sheet.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.