The Hidden Junk Fees Providers Include and How to Avoid Them

The myriad of local, state and federal taxes and fees imposed on the telecommunications industry can be complicated for providers to keep up with and difficult for the businesses that use their services to understand. In addition to local sales tax, state sales tax, communications services tax, 911, USAC, NANP and Federal Excise Tax, many providers tack on hidden junk fees to try and increase their profits while keeping their advertised base prices low. These hidden fees, once you’ve been hit with them, are frustrating to say the least. That is why we have put together a this list of popular UCaaS providers and their hidden fees so that you (and your wallet) aren’t caught by surprise.

 
 
 

RingCentral

Claim: RingCentral empowers businesses with conversation intelligence, and unlocks rich customer and employee interactions to provide insights and improved business outcomes.

Hidden Fees: RingCentral charges a “Compliance and Administrative Cost Recovery Fee” (CRF). According to their website, the CRF is “a fee that RingCentral charges in order to recover various costs and expenses. It is not a tax, nor is it mandated by any level of government or government agency.” RingCentral also charges an Emergency Service Fee. This fee is used to recover RingCentral's costs directly associated with providing emergency services 911 and E911 for VoIP customers. This again, is not a government-mandated charge. 

According to a 2020 sample bill, RingCentral also charges a monthly fee of $4.00 per line as part of their Cost Recovery Fee, and $1.00 per line for their Emergency Service Fee. These can add up quickly, especially if your business requires multiple lines of VoIP!

 
 
 

Nextiva

Claim: Nextiva is a cloud-based, all-in-one unified business communications platform, team collaboration tool, and customer service software that helps businesses grow faster.

Hidden Fees: Nextiva charges RRF and E911 fees which they claim, “are industry-standard fees and separate from government taxes.” They currently charge $3.50 per line for the Regulatory Recovery Fee and $1.50 per line for the E911 fee. These fees are similar to the ones we saw from RingCentral and represent added fees to cover standard business costs.

 
 
 

8x8

Claim: 8x8 helps businesses of all sizes empower employees and delight customers with a unified platform for contact center, business phone, video, and chat.

Hidden Fees: 8x8 adds Regulatory Recovery (RRF) and E911 fees to their bills. According to their website, “The Regulatory Recovery Fee (RRF) is a ​monthly​ fee charged by 8x8 (on a per-extension basis) to recover some of its regulatory compliance costs.” According to this 2015 Sample Bill from 8x8’s website, 8x8 charges $1.99 per extension for their E911 Service Fee in addition to government mandated state 911 fees, and $3.49 fee per extension for their Regulatory Recovery Fee. These fees add up to $5.48 per extension in addition to any government mandated fees and taxes (totaling 11 separate fees) added to your bill.

 
 
 

Vonage

Claim: Vonage provides unified communications, contact centers and programmable communications APIs, built on the world's most flexible cloud communications platform.

Hidden Fees: Vonage has added a Regulatory, Compliance and Intellectual Property Fee (RCIP) and a Emergency 911 and Information Services Fee. Vonage charges $3.99 per line for their RCIP fee and $1.99 per line for their Emergency 911 and Information Services Fee. In addition, Vonage also charges a flat rate of $1.99 plus tax for any calls made to 411 directory assistance and/or enhanced 411.

 
 
 

HostMy

Overview: HostMy is a hosted communications services company built on customer care. For two decades, HostMy has provided best-in-class Hosted Voice, Text, Video, Fax and Contact Center services to businesses of all sizes. 

No Hidden Fees. Unlike its competitors, HostMy does not charge hidden junk fees. HostMy believes that the standard costs of doing business should be factored into the advertised price of the service. It does this to maintain a relationship of trust and transparency with customers. 

 

Don’t Be Caught Off Guard

The assortment of government taxes and fees included on your bill can be quite the headache, and some companies want to hide extra fees to bolster their profits, hoping you won’t notice. By partnering with HostMy, you can ensure your business will have the support it needs to fulfill its mission. HostMy offers affordable, fully-managed hosted VoIP to help you better communicate with customers, streamline operations and fulfill your mission without having to worry about your communications technology or any hidden junk fees.

Disclaimer

Due to changing business and pricing practices, the assertions made in this document are subject to change. Links provided in this document to third-party sites do not constitute an endorsement by HostMy of the parties or their products and services. Although every attempt has been made to relay accurate information, interested parties should follow the links provided and make their own judgement of the information presented.


The information in this article is subject to change. The article should not be construed as a commitment by HostMy or its Agents or Partners. HostMy is not responsible for any errors that may appear in this article.