A Monthly Recurring Charge (MRC) is the set amount billed every month for an ongoing telecom or IT service, such as an internet circuit, a phone line, a UCaaS licence or a managed service. It is the contracted price of the service each month, usually stated before taxes, surcharges and any usage-based charges. Together with non-recurring charges (NRCs) for one-time work, the MRC is how most telecom and managed services are quoted and compared.
At a glance
- The MRC is the contracted monthly price of a service, billed for as long as it runs.
- It is usually quoted before telecom taxes and surcharges and usage charges.
- Quotes list MRC and NRC separately; compare both over the full term.
- What happens to the MRC at the end of the term depends on the contract’s renewal terms.
- Checking billed MRCs against contracted rates is a core part of telecom expense management (TEM).
What problem it solves
Most organizations have dozens or hundreds of recurring services across several providers. The MRC gives each one a clear monthly price that can be listed in an inventory, compared with the contract and added up into a budget. It is the unit buyers use to compare quotes, find services billed above contract, and identify lines that are still being paid for after they stopped being used.
Because the MRC is billed every month, small differences matter: a service billed slightly above its contracted rate, or a disconnected circuit still being charged, adds up over a multi-year term.
How it works
In the quote and contract. Each service is listed with its MRC, and often its NRC, per location. The contract sets the MRC for the term, which may be one, two, three or more years. Longer terms often bring lower monthly rates.
On the invoice. The bill shows the MRC for each service, then adds taxes, regulatory fees, carrier surcharges and any usage charges, such as long distance minutes, data overages or burstable bandwidth. The total can therefore be noticeably higher than the sum of the MRCs.
Changes. Adding, upgrading or removing a service changes the total MRC, sometimes with a one-time charge. If the contract has a minimum annual commitment, removing services may not reduce what you owe below that floor.
End of term. Some contracts move services to month-to-month terms after expiry, sometimes at a higher rate, and some auto-renew for a further term unless notice is given. Many organizations pay above-market MRCs on services whose terms ended years ago.
For circuits such as dedicated internet access, our telecom expense management solution page explains how buyers keep inventory, contracts and invoices in line.
When it matters for buyers
- Comparing quotes. Line up MRCs per service and add NRCs over the full term to compare offers fairly, as part of total cost of ownership (TCO).
- Contract renewal. It is the main number to renegotiate, and market rates for some services fall over time.
- Budgeting. Total MRC across providers is the baseline of the telecom budget.
- Invoice review. Billed MRCs should match contracted rates; a telecom audit checks this systematically.
- After a move or downsizing. Services at closed sites often keep billing until someone disconnects them.
Questions to ask vendors
- What is the MRC for each service and location, and for how long is it fixed?
- What taxes, surcharges and usage charges will be added on top?
- What happens to the MRC at the end of the term: month-to-month, auto-renewal or a price change? How much notice do we need to give?
- Are there price escalators during the term?
- Can MRCs be reviewed against current market rates during the term, for example in exchange for an extension?
- If we remove services, how does that interact with any minimum commitment?
How it differs from a non-recurring charge
The MRC is billed every month for as long as a service runs; a non-recurring charge (NRC) is billed once for one-time work such as installation or construction. Providers can trade one for the other, waiving an NRC in exchange for a higher MRC or a longer term, or spreading construction costs into the monthly price. Compare the total of both over the same term to see which offer is actually cheaper.