CUB Survey: Illinois' Worst Phone Charge
Out of about 450 votes cast, the Subscriber Line Charge, a.k.a. the Interstate Access Charge, the Federal Access Charge, and the Federal Subscriber Line Charge, received about 42 percent of the vote, easily beating out the infamous Inside Wire Maintenance Plan, or "Line-Backer," an insurance policy for telephone wire repairs that happen on average about once every 20 to 30 years. That charge garnered 21 percent.
In honor of "March Madness," the nickname for the NCAA basketball tournament,
The Tournament of Bad Phone Charges
CUB created "March Badness," a tournament of bad phone charges. The staff narrowed down dozens of bank-busting charges, fees and services to eight bad ones (a "Not-so-great Eight"), and asked members of the CUB Action Network, a service that provides weekly e-newsletters and allows consumers to send messages to elected officials, to pick the worst.
percent
41.5
Subscriber Line Charge
20.9
Inside Wire Maintenance Plan
9.7
Directory Assistance
9.2
Carrier Cost Recovery Fee
9
Enhancement Service
4.8
Voice Mail
3.7
Cell-phone Insurance
1.1
Roadside Assistance
One respondent's name was drawn to win 50 free Compact Fluorescent Light (CFL) bulbs. "I was shocked, because I never win anything," said Mary Vail, of Dolton, who added that she has some money-saving CFLs in her home but "now I have them for all my lights." Each CFL can cut an electric bill by up to $10 a year. "I'm gonna' love em'!" Vail said of the bulbs.
The survey explained that the Federal Subscriber Line Charge (SLC, pronounced "Slick") covers a local phone company's costs allocated to long-distance calls. Every local customer pays it, whether they make a long-distance call or not. It may sound a lot like a tax, but it's not. The "Slick," which is capped at $6.50 a month, goes directly to the telephone companies. For years, CUB has pushed for "truth-in-billing" reforms that would force phone companies to include the "Slick" in their advertised rates.
A distant third was Directory Assistance, which the phone companies charge about $2 per call for a service that consumers can get elsewhere for free.
These charges may despress you, but the good news is CUB's Phone Savings Center can show you how to trim your local, long-distance, and wireless bills. If CUB does help you save, please share some of your savings to help us expand our money-saving services.
Here's a full description of all the charges in the survey, along with the percentage of votes they received:
Federal Access Charge, a.k.a. Interstate Access Charge, Subscriber Line Charge, 41.5 percent
It may sound like a tax, but the Federal Access Charge is just another way for the phone company to fatten its bottom line. The charge, roughly $5 a month, is supposed to cover a local phone company’s costs allocated to long-distance calls. But you pay it even if you don’t make a single long-distance call.
Inside Wire Maintenance, a.k.a. Line-Backer, 20.9 percent
This Line-Backer treats your phone bill about as kindly as the NFL version treats quarterbacks. It’s an optional insurance plan—up to $7.50 per month—that covers repairs to telephone wires inside the walls of your home. One problem: Those repairs are needed on average about once every 20-30 years. Avoid it and save up to $90 a year.
Directory Assistance, a.k.a. 411 or 555-1212, 9.7 percent
This dinosaur of telecom charges slaps you with about $2 every time you call to get a phone number. Try FREE directory-assistance numbers such as 1-800-FREE-411 or 1-800-Info-Fast. You may have to listen to an advertisement before you get your number—but who cares when it’s free!
Carrier Cost Recovery Fee, 9.2 percent
This catch-all charge, about $1 on up, goes directly to the company’s bottom line. The stated purpose is to help recover costs connected to calling other states and countries. But as one blogger complained to his company: “Seriously…? Did my three one-minute phone calls really cause you to need to recover $1.49 in carrier costs?”
Enhancement Service, 9 percent
We wish we could tell you what “enhancement service” actually enhances. The same goes for “enhanced voice mail” or “enhanced long distance set up.” Those are charges that consumers complain have been “crammed” onto their phone bills without their consent. State Rep. John Bradley was one of those victims. "The only thing I know they're enhancing is my bill,” he said. Bradley worked with CUB and Attorney General Lisa Madigan to pass a new law that cracks down on cramming.
Voice Mail, 4.8 percent
A flashing red light is how voice mail says you’ve got messages—but it might as well be warning you of a higher phone bill. The service charges you about $10 a month, but a lot of people are surprised to hear that you’re also charged for every message left. Instead, buy an answering machine, which has no monthly fee and no per-message charges.
Cell-phone Insurance, 3.7 percent
The $4 to $5 monthly fee covers a lost, stolen, or damaged cell phone—but the coverage is often so limited and the deductible so high that it’s probably better to pass on this service. At least make sure to read the fine print to find out what it covers. One thing is for sure: Cell-phone insurance offers rock-solid protection…from a lower wireless bill.
Roadside Assistance, 1.1 percent
Chances are if you’re paying this charge on your cell-phone bill, a few dollars a month, you won’t even know what kind of roadside repairs it covers. Read the fine print! One CUB staffer shelled out $100+ for the service, even though he never used it. Maybe “roadside assistance” can help fix that rare flat tire, but it’s even better at pumping up your cell-phone bill.