Industry Indicators

CTIA is sore over the taxes levied against wireless customers.

“In the last five years, wireless prices have fallen more than 30 percent,” says Tom Wheeler, the vocal CEO of the wireless association. He complains that the average consumer nationwide pays 14.29 percent in taxes—“eating away what should be consumer savings.” The top five highest wireless taxes by state, according to the CTIA:

New York, 20.14 percent; Illinois, 19.71 percent; Nebraska, 19.23 percent; Washington, 19.22 percent, and Texas, 18.32 percent.

Many cities and counties also tack on local fees and taxes on subscriber bills, in addition to state and federal charges. Wireless-specific surcharges exist in San Francisco, Prince George’s County, Md., and other jurisdictions. The FCC also raised the wireless Universal Service Fund fee on April 1, effectively doubling it for most consumers.