With so many fees and surcharges appearing on phone bills – and with little or no explanation – it’s easy to wonder if those landline and cell phone bill fees are all legitimate.

Although some of these charges could benefit from a little explanation to help reinforce consumer confidence, they are for the most part lawfully allowed, or even required. Both federal and state laws require phone companies to collect certain fees and charges,

Whether the phone companies pass those revenues on to their proper destination may be another story, however.

Cell Phone Bill Fees on the Rise

According to one source, there are at least 75 different federal, state and local cell phone bill fees that wireless service providers may charge their mobile phone customers.

On average, those fees add up to 18 percent of mobile phone subscribers’ monthly bills. Tax increases could put that rate on the upswing: wireless tax rates have increased by around three percent over the past eight years.

In addition to taxes, some of the government-ordered fees that appear on a phone bill are discretionary. Regulators require carriers to pay these cell phone bill fees. The carriers have the option of passing those fees on to their customers. And because they’re allowed to pass them on, they often do.

Some of the fees that may appear on your phone bill may include:

Universal Service Fund Fee. This federal fee funds a number of government communications programs. It’s mandatory for all service providers to pay this fee. The largest service carriers pass this fee on to their customers, but many smaller carriers just absorb this cost.

Gross Receipts Surcharge. These charges cover taxes that some local governments impose based on the carrier’s gross receipts. It can vary widely, depending on the carrier and the area in which it operates.

911 or Emergency Response Fees. These fees help local governments cover the cost of emergency response services. Phone companies are expected to pass revenue from these fees on to the local governments that provide these services. Whether these fees are required or optional varies from area to area.

Whistleblower Investigation

Failure of a mobile phone carrier to pass on cell phone bill fees to their proper governmental entities could be grounds for a whistleblower lawsuit.

Whistleblower attorneys are now interested in speaking with phone company employees who may have information about possible mishandling of legally-mandated phone bill fees.

Eligible employees may have grounds to initiate a whistleblower lawsuit under the federal False Claims Act. Whistleblowers whose claims are successful may be eligible for an incentive award of between 15 and 30 percent of the amount of money recovered.

The current investigation is also looking into the fees companies charge commercial customers for 911 and emergency services. Some companies are suspected of underbilling their commercial cell phone customers for 911 fees.

While underbilling makes these companies’ services more competitive, it also deprives local governments of the funds they need to provide emergency services.

Commercial cell phone customers with T1 lines who believe they may be underbilled for 911 or emergency services fees may qualify for free participation in the current investigation.