NEXTEL Wireless  Billing Taxes, Fees, & Other Charges
In addition to the monthly per unit access charge for Nextel's digital cellular, Direct ConnectSM and data services, the following charges may be applied to your monthly invoice based on the type of wireless service you have and your geographical location:
Federal Excise Tax
Telephone services are subject to a 3% federal excise tax. The tax does not apply to dispatch excess airtime services or the sale of phones and/or accessories. The tax is collected by Nextel and remitted to the Internal Revenue Service. Exemption under the income tax laws does not necessarily qualify you for exemption under the excise tax laws.
Federal Programs Cost Recovery Fee
The Federal Programs Cost Recovery Fee is a monthly fee of $1.55 (or $2.83 in some markets) per unit, per month that reflects Nextel's cost of complying with Federal Communications Commission (FCC) rules and initiatives advancing Enhanced 911, Telephone Number Pooling, and Wireless Number Portability. The fee is not a tax or a fee mandated by the government
Enhanced 911 is a technology that will help emergency response agencies determine the location of anyone who dials 911 from their enhanced wireless phone. Nextel is upgrading its network and handsets in order to meet federal requirements and ensure that the most advanced 911 technology is available to customers.
Telephone Number Pooling will allow Nextel to assign customers new telephone numbers more efficiently. This will, in turn, help to conserve the nation's numbering resources and potentially reduce the need for new area codes in the United States.
Wireless Number Portability will enable you to keep the same phone number when changing to a new service provider within the same local area. This will work for both cellular and landline services. Network upgrades and changes are necessary for Nextel to offer this convenience to customers in compliance with federal requirements.
Gross Receipts Recovery
Some states, counties and cities impose the gross receipts taxes on telecommunications providers. Nextel recovers these taxes by charging customers a recovery fee. The fee appears as a separate line item in the Taxes, Fees and Assessments section of your invoice.
Service Fee
This is a monthly per unit "Service fee" of $1.15. The fee is a rate adjustment of the monthly access rate and reflects the costs of providing services associated with Nextel's wireless cellular, Nextel Direct Connect and data services. In the future, this fee may be combined with the monthly access rate after billing system adjustments are completed.
State and Local Taxes
States, counties, cities, and special taxing districts may assess various taxes on wireless communication services and/or the sales and rentals of wireless phones. Applicable taxes are collected by Nextel and remitted to the jurisdiction that is assessing the tax.
State & Local Required 911 Charges
Some states and localities require wireless carriers to collect a fee for 911 funds. These fees vary by state and locality.
Telecommunications Relay Service Surcharge
All telecommunication service providers are required to contribute to the Federal Telecommunications Relay Service (TRS) Fund in order to finance the provision of telecommunications relay services. Telecommunications relay services enable hearing and speech impaired persons to send and receive messages to and from persons whose telephones are not equipped with specialized telecommunications equipment. Nextel recovers the cost of these contributions through a 0.073% monthly surcharge on customers' bills.
Universal Service Fund Surcharge
All telecommunication service providers are required to contribute to the Federal Universal Service Fund. The universal service fund subsidizes programs for schools, libraries, and rural health care providers. Nextel recovers the cost of these contributions through a 1.364% or 1.50% monthly surcharge on customers' bills.
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