The hidden cost of cellphones.


If you read my blog regularly, you'll know what I think of cellphones. Sadly the time is approaching where I'm going to need one - mostly for work. I've been shopping around and I've found the widely unpublished bottom-of-the-line service that T-Mobile offer. It's still nauseatingly expensive - 30 bucks a month. The interesting thing is trying to find out exactly what the "extra fees and taxes" are that get added on. None of the cellphone companies advertise what they are, but I spent a while digging around on the net and as far as I can gather, this is how it's going to pan out:
Basic plan = $29.99
Federal regulatory fee (fixed) = $0.86
Federal excise tax (3.00%) = $0.90
Federal universal service fee (9.20%) = $2.76
Charge for state universal service fund (1.00%) = $0.30
State and local sales taxes (6.60%) = $1.98
Utah uniform service fund (0.34%) = $0.10
Utility franchise fee (6.00%) = $1.80
911 service fee (fixed) = $0.53
Poison control (fixed) = $0.07
Telecommunications relay services (fixed) = $0.10
Total taxes = $9.40
Total monthly bill = $39.39

Nearly 10 bucks more in fees and taxes for basically $40 a month. It's a pity I can't get the company to plump for it because $40 a month for a cellphone is a fucking ripoff. Still - if I'm going to have to cough up that much every 30 days I'm at least going to have a half-decent phone. Pity I can't get a half-decent one that has no camera. Why does nobody just make a phone?

Comments

Anonymous said…
Regarding that federal excise tax, check out this post

Upcoming Nokia E50 is an excellent business telephone, and it comes in two variants, with and (yes!) without a camera.
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