Sample local telephone bill

These are typical local bill for a fictional business in Florida. Like other local bills, this one follows an outline: summary page, monthly service, local calling, intralata calling, and charges from other carriers.

Summary page
The bill’s first page usually has two sections: the summary of charges and the bill remittance page. The summary of charges outlines the current charges, any past-due charges, charges from companies other than the local carrier, and the total amount due. The perforated bill remittance page is to be included with the check when the customer sends in the payment.

When looking at this page of the bill, a seasoned bill auditor notices that the customer has measured local service. It is billed $12.54 for local calls. It may be cheaper to switch to a flat-rate service. The customer also has intralata calls. (On Telephone Company A’s bills, intralata calling is listed as “Itemized Calls.”) Any usage, whether it is local, intralata, or long distance, that appears on a local bill can almost always be reduced. In this case, the customer also has $31.04 listed under “Charges for Other Companies.” These charges can almost always be reduced or removed altogether.

Monthly service
Page 2 of the bill shows all of the monthly recurring charges billed by the local carrier. The first item is usually the charge for the lines, which is a fixed expense. Other charges appearing in this section are any optional services, such as call forwarding, wire maintenance, hunting/rollover, and directory advertising in the yellow or white pages. In the sample bill, the customer has two lines that cost $43.87 each. This is a high rate for measured service, so a bill auditor would research why the line rate is so high. A bill auditor would also check with the end user to make sure the three-way calling and call forwarding features are actively used. If not, they should be canceled.

Local calling
As previously stated, local lines can be billed one of three ways: flat-rate service, measured-rate service, or message-rate service. With flat-rate service, local calls are not charged, so this section of the bill may be missing. In some cases, the local carrier will still provide a summary of local calls even though it is not charging for the calls. With measured-rate or message-rate service, this section of the bill itemizes the local calling usage and the charges associated with that usage. If the customer switches to flat-rate local service, the $12.54 charge for local calls, listed on page 2 of the bill, will be eliminated.

Intralata calling
In this bill, intralata calls are listed under the heading “Itemized Calls” on page 3 of the bill. The customer is paying $0.24 per minute. The business saver service discount plan gives the customer a 15% discount. This lowers the effective rate to $0.20 per minute, which is still far too high for today’s marketplace. The customer should consider switching these calls to its long-distance carrier. Most long-distance carriers will carry intralata traffic for less than $0.10 per minute. Telephone Company A can implement this change in its central office. Before switching, the customer should first try to negotiate a lower rate with Telephone Company A.

The next heading on page 3, “Optional Calling Services,” simply shows the business saver service discount plan. The customer receives a 15% discount on intralata calling. If the customer had 800 service or calling cards through Telephone Company A and was using these services within the LATA, the 15% discount would also apply to these calls. However, most customers use their long-distance carrier for calling cards and 800 service.

Charges for other companies
After the local carrier has itemized its charges for monthly service, local calling, and LATA calling, the remainder of the bill is comprised of charges from other companies. The most common charges in this section, also listed on page 3 of the bill, are for legitimate services such as Internet access, interlata calling card charges, direct dial long distance, and collect calls. Fraudulent charges billed by other carriers such as United States Billing, Inc. (USBI) and Hold, Inc. usually appear in this section of the bill. Slamming, cramming, and 900 calls, if billed, will appear in this last section of the local bill.

In the sample bill, one of the two lines is showing long-distance calls carried by Telephone Company B at $0.25 per minute. The true cost-per-minute is actually higher, because the calls are billed in full-minute increments. Full-minute billing is about 8% more costly than billing the same calls in 6-second increments (see Table 7.1 for a further explanation).

This customer might have been slammed by Telephone Company B, but it is more likely that a customer error caused this problem. Assuming the customer has a separate Telephone Company B long-distance account, this line should have been billed on that account, not on the local bill. But if the customer failed to inform its Telephone Company B account team about this line when it was first ordered, the line will bill alone on the local bill. This situation is called “loose traffic” because the calls (traffic) on this line are billing apart (loose) from the main Telephone Company B account. To correct this problem, the customer should inform Telephone Company B and request a refund. Telephone Company B will request bill copies and then “rerate” the bill—it will recalculate the bill at the correct lower rates and refund the difference.

Now that we have examined the outline of the local bill in detail, the different local line charges that appear on the local bill. Customers have many choices when it comes to their local service.

Only through systematic review and diligent auditing of your local bills can you avoid being overcharged. If a customer blindly accepts the carrier’s service offerings and billing, without question, the company will be subject to overcharges and inefficiencies every month. The culture of the telecommunications industry is built on carriers providing customers whatever the customer is willing to accept. The fewer questions customers ask, the greater the revenues for the carriers.