FCC
The Hidden Costs of Wireless: How Government Fees Drive Up Your Bill At Cloaked Wireless, we believe in transparency. That’s why, for the first six months of this year, we’re covering all government taxes and fees on your wireless bill. Why? Because we want to highlight just how unfair and excessive these charges have become.
The Truth About Wireless Taxes and Fees
Every time you pay your wireless bill, you’re not just covering the cost of your service. A significant portion goes directly to government-mandated taxes and regulatory fees. These hidden costs can add up to 25% or more on top of what you actually signed up for.
Here’s a breakdown of some of the taxes and fees you’re paying—whether you realize it or not:
1: Federal Universal Service Fund (USF) Fee
The USF Fee is meant to provide affordable telecom services to rural and low-income communities, as well as schools and libraries. However, this fee fluctuates every quarter, and the FCC keeps increasing it. In 2020, it was 21.2% of long-distance charges; today, it’s well over 30%. Consumers end up footing the bill, while large carriers simply pass these costs along.
2: State and Local Wireless Taxes
On top of federal charges, most states and local governments impose their own wireless taxes. Some of the worst offenders? Illinois, Arkansas, Washington, and Nebraska, where wireless tax rates exceed 20%. These taxes are among the fastest-growing fees on any utility, outpacing inflation.
3: 911 Emergency Fees
Every wireless user is charged a fee to support 911 emergency services. While funding public safety is important, many states misuse these funds for unrelated expenses.
Some states (like New York) have diverted millions of dollars meant for 911 upgrades into general state budgets.
4: Regulatory Cost Recovery Fees
Major wireless providers tack on these fees, blaming “government regulations” as the reason. But instead of covering legitimate regulatory costs, these fees often function as profit-padding mechanisms for big telecom companies.
5: Other Mystery Fees
Depending on where you live, you may also be paying:
Telecommunications Relay Service (TRS) charges for services for the hearing impaired. Infrastructure fees to fund local telecom projects.
Utility user taxes, often at double-digit rates in some cities.
How Have These Fees Increased Over Time?
Wireless taxes and fees have skyrocketed over the years, far outpacing inflation:
Year Avg. Wireless Tax Rate
| 2003 | 10.2% |
| 2013 | 17.2% |
| 2023 | 24.8% |
In the past 20 years, wireless taxes have more than doubled. In some states, taxes make up nearly 1/3 of a customer’s bill. The FCC and state governments keep raising these fees, while customers are stuck paying more.
Why This Hurts Consumers
Your bill keeps increasing, even if your service stays the same. Lower-income consumers are hit hardest, since wireless services are essential for jobs, education, and emergency communication. Small carriers (like Cloaked Wireless) are unfairly taxed, making it harder to compete with big telecom monopolies.
Demand Change: Contact Your Representatives The government shouldn’t be using wireless taxes as a cash grab. It’s time to demand lower, fairer fees.
Take Action in 3 Easy Steps:
Find your representatives: Use Congress.gov to look up your local officials. Send them a letter or email using the template below.
Spread the word: Share this information on social media and with your friends.
I am writing to express my concern over the excessive taxes and fees imposed on wireless services. Today, the average wireless tax burden is over 24%, making it one of the most heavily taxed utilities in the country.
While I understand the need for public funding, many of these fees—such as the Universal Service Fund (USF) and 911 charges—have been increased repeatedly, with little transparency on how the money is actually spent. Some states have even misused 911 funds, diverting them to unrelated projects instead of improving emergency services.
While I understand the need for public funding, many of these fees—such as the Universal Service Fund (USF) and 911 charges—have been increased repeatedly, with little transparency on how the money is actually spent. Some states have even misused 911 funds, diverting them to unrelated projects instead of improving emergency services.
Wireless service is a necessity, not a luxury. These excessive taxes disproportionately hurt lower-income families, small businesses, and privacy-focused providers like Cloaked Wireless, who are forced to charge customers more just to keep up with government-imposed fees.
As a constituent, I want to see real change in how the government regulates and taxes wireless services. Please let me know your stance on this issue and what actions you plan to take.
We’re Fighting Back – Join Us!
At Cloaked Wireless, we are committed to exposing these unfair fees and advocating for a better, more transparent wireless industry.
For the first six months of this year, we’re covering all taxes and fees on your bill. That means what you see is what you pay—no surprises, no hidden costs.
But we need your help. Contact your representatives today and demand an end to these excessive wireless fees. Together, we can make a difference.