An access charge is a fee charged by a telecommunications carrier to its customers for providing them with access to the local telephone network. The charges are typically assessed on a monthly basis and are separate from any other fees, such as long distance charges or equipment rental fees.
Access charges were first introduced in the early days of the telephone industry when there was only one provider of service in each geographic area. This monopoly allowed carriers to charge whatever they wanted for access to their networks. In order to encourage competition and keep prices reasonable, regulators began imposing limits on how much carriers could charge for access.
Today, there are still many areas of the country where only one carrier provides service. In these areas, consumers have little choice but to pay whatever rates the carrier imposes. However, in most parts of the country there is now some degree of competition among providers, which has helped keep prices down somewhat.
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