Verizon lobbies FCC to eliminate gov surcharge on DSL service. Then immediately adds - PBX Info :: Your Free PBX, PABX and Telephone Information Resource

**rixride** · 08-23-2006, 09:12 AM

Verizon lobbies FCC to eliminate government surcharge on DSL service. Then immediately adds their own surcharge of the same amount, which is, of course, totally unrelated to the eliminated fee

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Verizon imposes new DSL

AUG. 21 5:51 P.M. ET Verizon Communications Inc. is imposing a new surcharge on high-speed Internet service just as customers were set to receive lower bills thanks to a decision last year to deregulate the service.
In a recent notice to customers, the telecommunications company said it would begin imposing the surcharge for all new digital-subscriber line customers, and on current DSL customers with monthly plans. Customers on an annual plan will start paying when their plan expires.
The surcharge will initially be $1.20 a month for customers with service up to 768 kilobits per second and $2.70 per month for customers with faster DSL service, according to the company.

The fee comes as a government fee on DSL customers for the Universal Service Fund is being phased out. For customers with service up to 768 kpbs, the fee was $1.25 a month, and for customers with service of up to 3 Mbps, the fee was $2.83 a month, according to Verizon. Customers will no longer pay such charges effective Aug. 14, New York-based Verizon said. Bobby Henson, a Verizon spokeswoman, cited "new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service. That service doesn't have the benefit of the revenue that was coming in from voice."
Verizon was among the companies that had pushed for the Federal Communications Commission to deregulate DSL service, which the commission did in August 2005. Under the ruling, DSL was considered to be an information service. Information services are generally exempt from universal service payments that are included in telephone bills. The FCC, however, mandated that DSL providers continue to contribute to universal service for 270 days in order to give the agency time to develop broad reform of the system.
Henson said the decision to impose the new surcharge now "is not related at all to USF." She said she "would strongly disagree" with criticisms that Verizon was in effect diverting to its own coffers money that had previously supported the Universal Service Fund.

***JulianW*** · 08-23-2006, 10:16 AM

Sounds like they've found a way to get more $$$$ without many customers complaining.

slagburn · 08-23-2006, 11:02 AM

That's not surprising - lots of big companies have testicular miscommunications where the left nut has no idea where the right nut is swinging.

Speaking of fee's... where do ya think SBC came up with all the dough to buy at&t? Looked at a phone bill recently and seen all of the fee's on those? Ditto cell phone bills.

There was any article recenlty in network world regarding the telcos, fees and all of the old money rolling around - the general idea is that the telcos have been convincing the government to let them charge all of these fee's and in return they promised things that just haven't happend and for the most part aren't technically feasible.

***MSYoung*** · 08-23-2006, 12:19 PM

Quote:

Originally Posted by rixride

The fee comes as a government fee on DSL customers for the Universal Service Fund is being phased out. For customers with service up to 768 kpbs, the fee was $1.25 a month, and for customers with service of up to 3 Mbps, the fee was $2.83 a month, according to Verizon.

That fast huh? On a slow day my cable modem does 6Mbps.