If you're evaluating VoIP providers—either for your own business or on behalf of a client—your choice matters. Whether you're an IT consultant, office manager, or business owner, choosing the wrong provider can lead to frustration, inflated invoices, and long-term headaches.
One of the most common surprises? Hidden fees.
In 2025, many of the largest national VoIP providers still advertise low base prices, only to tack on additional charges buried in the fine print—fees that can raise the actual cost by 20–30% or more. These aren’t government-mandated taxes; they’re often proprietary surcharges with vague labels like “regulatory recovery” or “admin cost.”
At TeleCloud, we’ve helped hundreds of businesses and IT professionals make sense of VoIP pricing, and we’ve seen firsthand how easy it is to get caught off guard.
1. Vonage
Vonage Invoice Example:
Service Charge Total: $1,781.00
Taxes, Fees, and Other Charges Total: $523.69 (Taxes: $272.11; Other Fees and Charges: $251.58)
Percentage Going to Taxes: About 11.6 percent
Percentage Going to Fees and Other Charges: About 10.7 percent
Some things to watch for:
- Regulatory, Compliance, and Intellectual Property Fee (RCIP Fee) - As stated on the Vonage website, the RCIP fee is not government-mandated. It’s a fee Vonage uses to cover certain costs associated with regulatory agency compliance, patent protection, trademark filing, copyright registrations, fraud prevention, and more.
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- Cost: $3.99 per voice line, fax line, virtual number, toll-free number, and SoftPhone
- Emergency 911 and Information Services Fee - This is not a government-mandated fee but a Vonage-specific fee. It covers 911 service and unlimited 411 directory assistance.
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- Cost: $1.99 per line (fax, voice, and SoftPhone); plans that don’t charge this fee are billed at $1.49 per 411 call
- Federal Program Fee - This fee recovers Vonage’s contributions to the Federal Communications Commission (FCC) and the federal Universal Service Fund (USF).
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- Cost: As of April 1, 2019, the rate is 12.3 percent
- State-Specific Taxes and Fees - Certain taxes and fees are justified and unavoidable, and state-specific taxes fall under that category. Expect some of these fees from any VoIP provider. However, they should be up-front about these costs and include them in the initial proposal.
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- Cost: Varies by state; in New Jersey, for example, state sales tax is 6.625 percent, and the state 911 fee is $0.90 per line
2. RingCentral
RingCentral Invoice Examples:
Service Charge Total: $452.83
Taxes and Fees Total: $178.06
Percentage Going to Taxes, Fees, and Other Charges: About 28.2 percent
Service Charge Total: $390.46
Taxes and Fees Total: $139.52
Percentage Going to Taxes, Fees, and Other Charges: About 26.3 percent
Some things to watch for:
- Compliance and Administrative Cost Recovery Fee (CRF) - As stated on the RingCentral website, this isn’t a tax or government-mandated fee. The charge recovers RingCentral’s costs associated with federal, state, and local filing requirements, subpoenas, civil litigations, protection of intellectual property, and more.
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- Cost: Not specified on the RingCentral website, but the fee amounts to $3.00 per seat
- Federal Universal Service Recovery Fee - This fee covers RingCentral’s contributions to the federal Universal Service Fund, which offers telecommunication options at a reasonable cost to income-eligible consumers. Per the website, “RingCentral is permitted, but not required, to recover these costs from its customers.”
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- Cost: Not specified on the RingCentral website
- 911 Fee and Emergency 911 Service Fee - These are two separate fees. The e911 fee (not government-mandated) covers RingCentral’s costs associated with providing 911 services; the 911 fee is a local government charge used to pay for services like rescue and fire.
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- Cost: Not specified on the RingCentral website, but the 911 fee amounts to $1.00 per seat
- State, Local, and Provincial Taxes - These are government-mandated fees and vary according to your state, province, and municipality. VoIP providers have no control over these kinds of taxes.
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- Cost: Varies
3. Jive Communication
For an idea of the fees, taxes, and surcharges added to a Jive Communications invoice, please see this report for the state of California: Breakdown of Services Taxes, Fees, Surcharges, and Surcredits Report.
Remember, many of these extra charges are state-specific, so the fees your clients are subject to (and the amount of those fees) will vary by state.
4. Nextiva
Some things to watch for:
- Regulatory Recovery Fee (RRF) - This charge offsets Nextiva’s costs associated with governmental inquiries, obligations, and related legal and billing expenses. It is not a government-mandated tax or fee.
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- Cost: Not specified within Nextiva’s terms and conditions or website, but the RRF amounts to $3.25 per line
- Enhanced 911 (E911) - This charge offsets Nextiva’s costs associated with funding the infrastructure that supports various aspects of emergency services.
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- Cost: Not specified within Nextiva’s terms and conditions or website, but the E911 fee amounts to $1.00 per line
- Universal Service Fund (USF) - This fee covers Nextiva’s contributions to the federal Universal Service Fund, which offers telecommunication options at a reasonable cost to income-eligible consumers.
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- Cost: Not specified within Nextiva’s terms and conditions or website, but the USF amounts to 17.4 percent
For a full discussion of Nextiva’s terms and conditions, read here. Section 10 addresses “Fees and Charges.” Read here for a discussion of taxes, surcharges, and fees, including state-specific numbers.
5. Verizon
Verizon Invoice Example:
Service Charge Total: $702.58
Taxes and Fees Total: $211.15
Percentage Going to Taxes, Fees, and Other Charges: About 23.1 percent
Some things to watch for:
- Regulatory Recovery Fee (RRF) - This charge offsets Verizon’s fees associated with the Federal Communications Commission (FCC). It is not a government-mandated tax or fee.
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- Cost: Not specified on the Verizon website
- 911 Surcharge and 911 Emergency Service Fee - This offsets Verizon’s costs associated with providing emergency services.
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- Cost: Not specified on Verizon’s website, but it’s either charged per telephone access line or as a percentage of revenue
- Federal Universal Service Fund (USF) Fee - This fee covers Verizon’s contributions to the federal Universal Service Fund, which offers telecommunication options at a reasonable cost to income-eligible consumers.
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- Cost: Not specified on Verizon’s website, but it’s not charged to Lifeline customers
- Federal Access Recovery Charge - This surcharge offsets Verizon’s costs related to various federal, state, and local regulations.
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- Cost: Not specified on Verizon’s website
- Federal Subscriber Line Charge - This surcharge offsets Verizon’s costs related to reimbursement to long-distance companies.
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- Cost: Not specified on Verizon’s website, but the charge applies to each phone line
- Fios Digital Voice (FDV) Administrative Charge - This monthly line charge offsets Verizon’s cost of providing voice services. It is not a government-mandated tax or fee.
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- Cost: Not specified on Verizon’s website
Per Verizon’s customer agreement:
“Our charges may also include Federal Universal Service, Regulatory and Administrative Charges, and we may also include other charges related to our governmental costs. We set these charges; they aren't taxes, they aren't required by law, they are not necessarily related to anything the government does, they are kept by us in whole or in part, and the amounts and what they pay for may change.”
6. 8x8
8x8 Invoice Example:
Service Charge Total: $270.86
Taxes and Fees Total: $104.28
Percentage Going to Taxes, Fees, and Other Charges: About 27.7 percent
For a full discussion of 8x8’s terms and conditions, read here. Section 2.3.1 deals with the “Customer Subscription Commitment,” Section 6 discusses “Taxes,” and Section 7 covers all “Billing and Payment” issues.
Per 8x8’s invoice:
Why These Hidden Fees Catch So Many People Off Guard
Most buyers don’t have time to comb through 20+ pages of terms and conditions—and VoIP providers know that. Whether you're signing up for your own business or recommending a solution to a client, it’s easy to assume the quoted price is the final price.
But that’s often not the case.
What looks like a $30/user plan on paper can quickly become $38–$40 per user after fees, surcharges, and “cost recovery” add-ons are included. And once you’ve signed the contract, you’re locked in—even if the final bill is significantly higher than expected.
What You Can Do About It
Whether you're a business owner, IT lead, or trusted advisor, the best way to avoid surprise charges is to ask direct questions upfront and choose providers who value pricing transparency.
Before committing, ask:
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Can I see a full per-user cost breakdown, including all taxes and fees?
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Which fees are truly government-mandated, and which are internal surcharges?
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Are these pricing estimates specific to my location and team size?
These questions can uncover hidden costs early—and help you make a more informed decision.
How TeleCloud Does Things Differently
At TeleCloud, we believe in honest pricing and zero surprises. We don’t sneak in regulatory recovery charges, inflated E911 fees, or vague service “surcharges.” The quote we give you is clear, detailed, and accurate, so you know exactly what you’re signing up for.
That’s why IT consultants trust us with their clients, and why growing businesses choose us when they’re tired of the billing games. Your trust matters—and we protect it with transparency, not tricks. In fact, we’ve created a free guide to help you read your telecom bill, and we offer a free no-obligation telecom bill audit to uncover hidden costs and show you exactly where you might be overpaying.
Know What You’re Really Paying For
National VoIP providers may draw you in with attractive base pricing, but the real cost often hides in the fine print. From regulatory recovery fees to inflated line-item charges, these hidden costs can increase your bill by 20–30% or more every single month.
At TeleCloud, we believe you deserve better. We give you the full picture up front, so you can make informed decisions without worrying about surprise charges down the road. If you’re ready to stop second-guessing your VoIP costs and start working with a provider that puts transparency first, we’re here to help.
Schedule your free consultation with TeleCloud and experience what honest, predictable pricing really looks like.
