RSSFCC 'Very Upset' at New Verizon Fee
By Nate Mook | Published August 25, 2006, 2:40 PM
UPDATE: BellSouth now says it will drop the fee from customers' bills. The removal of the $2.97 surcharge should show up within a week, but it could take up to six weeks, the company said. Customers charged the fee since August 16 will receive a credit.
The Federal Communications Commission is preparing to launch a formal inquiry into a decision by Verizon and BellSouth to continue charging DSL customers for a Universal Service Fund fee the U.S. government is no longer requiring.
The USF mandates that telecommunications companies, including VoIP and cell phone providers, contribute a portion of monthly subscription fees to the U.S. government. The fund helps subsidize telecommunications services in high-cost regions of the country, and in schools and libraries.
As of August 14, however, DSL service is exempt from the program and customers should have seen their monthly bills drop by $1 or $2. Instead, Verizon has imposed new fees that largely negate any savings, while BellSouth said it will keep the charge as is. Qwest, meanwhile, said it is considering its options.
An FCC official told the Wall Street Journal that FCC Chairman Kevin Martin was "very upset" by the companies' plans to keep the money. The agency is planning to ask how the new fees comply with federal Truth-in-Billing laws, and what infrastructure costs are actually covered by the surcharge.
To its defense, Verizon said the added fees were brought about by "new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service." However, the company did not explain why it didn't simply raise the base price of DSL service.
The FCC also intends to ask why the companies are imposing the surcharge both to customers subscribing to just DSL, as well as those who additionally pay for phone service.
I doesn't matter what Bell South is doing it's never with the consumer in mind. Bell South Sucks and that my friend is the end of story.
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|When I read "Very Upset" I couldn't help but think of Team America and Kim Jong Il talking to Hans Blix (before he drops into the shark tank).
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|So, what do you guys think? :)
DSLExtreme gives refund while Verizon charges more. Verizon sucks @$$!
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|This is the reply from my ISP DSLEXTREME.COM
Hello,
Yes the FUSF charge is no longer valid that rate will be removed from your account and also a credit will automatically be added to your account for the month of August. If you feel you have any further questions regarding this matter please contact us at our billing office Monday through Friday at 800-774-3379. Thank You!
Regards,
Darlene
DSLExtreme
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|Why not continue the investigationand if it turns out they violated the rules fine them to the tune of 100X the amount collected and make it illegal for them to pass the cost of the fines on to the customer? It would certainly make them think twice before doing something this blatantly deceptive agian. Or better yet, make the fine a direct charge to the executives salary.
As long as there are no consequences things like this WILL continue. And as we say in sales management, "Compensation drives behavior.".
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|VERIZON
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|Telcos..Bah! Lowlife, cowboys and thieves.
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|I am asking my ISP - DSLExtreme.com to remove the charge.
SVC#120 9/1/2006 to 10/1/2006 -- Federal Universal Service Charge $2.21 1 $2.21
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|The only reason the FCC is "SOoooo UPSEeeeet" is because they also have to pay the fee as well. If it were anything else, they would be sitting on their butts, wined and dined by corporations, playing golf with them, etc.... until they got around to addressing lots of other FCC issues that affect us in our pocket books......
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|The unspecified new costs are a result of NSA compliance and in anticipation of the long term user data retention.
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|It figures Verizon was lying when they said they never participated in the NSA's program to monitor people's phone calls and call records.
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|No, they would be right. No such program exists. However, there is a program to track communication among terrorists, and I would certainly hope that Verizon participated in that.
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|You guys are either VERY young or very ill-informed. The NSA has done NOTHING new. They've done their assigned job since they were commissioned into existence.
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|However, there is a program to track communication among terrorists
Really? They got warrants showing probable cause for suspicion of terrorism for every person they put under surveillance?
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|If you're dark-skinned and calling anyone outside the U.S. you're obviously a terrorist. Isn't that how the law was crafted? :)
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|No warrants needed, because they're dealing with calls originating from outside the country. FISA doesn't cover the legal territory the surveillance program does.
Don't know about you, but I say it's pretty stupid to be allowed to snoop on calls originating from one country to another country, but not be allowed to snoop on calls from one country to the US.
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|I can't "stick it to the man" up here. Verizon is the only carrier option I have for phone or DSL. I see something wrong with not having an option. Just like my freaking power/gas company who is always raising my rates: Avista. I can't switch them either. I'd have to move. So, we are the man and they are sticking it to us good and deep. I don't enjoy it.
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|I am stuck using Verizon or just not having a phone line up here. I can't "stick it to the man" here or I won't have DSL or phone service. They are also my wireless provider. I guess I am the man that they're sticking it to.
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|Drop the carrier and switch to another one. THey will get the message if enough people drop them.
I always hated the baby bell's and VERIZON is just one of those.
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|if you haven't get it, telecom and cable companies are legal monopoly in their designated area. and they have an army of lawyers and lobbiest to get them what they want.
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|You obviously haven't traveled around much. Many areas have only one telco to serve them. Here it's Cox for broadband. Period. We don't have DSL, but it's coming (Verizon has been laying FiOS cables throughout our neighborhood for months). Phone service is separate, but they charge you double if you don't bundle phone with broadband here. I can't afford to split them up.
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|Wow. I thought common sense was extinct. Maybe I was wrong after all?
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|Quote From C/Net
"update: BellSouth, the No. 3 U.S. local telephone company, on Friday said it will immediately drop a $2.97 monthly fee for high-speed Internet service after U.S. communications regulators threatened to investigate the charge.
The U.S. Federal Communications Commission had been poised to send a letter of inquiry to BellSouth asking the carrier to explain the new fee, which replaces a surcharge for a government subsidy program, FCC officials said.
Most customers would see the change on their bills within a week, but it could take up to six weeks, BellSouth said. It added that customers charged the fee dating back to Aug. 16 would receive a credit.
However, the FCC's enforcement bureau on Friday did send a letter to Verizon Communications, the No. 2 U.S. telephone company, for information on its own new charge instituted to replace the fee for the government program.
"The bureau is investigating whether Verizon's practices are consistent with the obligations set forth in the commission's Truth-in-Billing rules," said the letter, which requires a response within 20 days."
I guess Bell South got the message, I wonder if Verizon will.
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|"I guess Bell South got the message, I wonder if Verizon will."
Can you hear me now?!
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|I'm with an ISP in California (castles.com)and when the ruling came out that the fee was eliminated there wasn't a decison to be made for us. If a tax or fee is required - we collect it and pass it through. And if it's not required - then we don't collect it.
Maybe it's just me but what happened to integrity?
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|Maybe it's just me but what happened to integrity?
What is "integrity"?
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|Integrity is doing the right thing........even when there is no one there to see you.
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|I guess I should've made that post's sarcastic tone a little more obvious. :)
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|Well, some justice here. Oh wait... Can you hear this Verizon?
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|Base Price = Pay Sales Tax
Govt Surcharge = No Tax, keep in my pocket.
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|I wrote them, here's their reply on 23rd.
Dear Superman,
Thank you for contacting the Verizon eCenter. My name is Linda, and I will be
handling your request today.
This message is in response to your email dated August 22, 2006. You inquired
about the new Verizon fees. I will be happy to assist you.
I understand your frustration.
Due to the cost of upgrading facilities with new technology and the rising costs
of operating expenses, it is sometimes necessary for us to raise the price of
products and services. I can understand your concern with the recent price
increase. Please be assured that we strive to keep price increases to a minimum.
Thank you for using Verizon. We appreciate your business.
Sincerely,
Linda
Verizon eCenter
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|Due to the cost of upgrading facilities with new technology and the rising costs
of operating expenses, it is sometimes necessary for us to raise the price of
products and services.
You should write them back pointing out that they are not raising prices but instead adding new ones. I wonder if they'll have a canned response for that?
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|did she just copy and paste the communication sent out by verizon
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|I thought about it but I think a certified letter to the CEO always raises the attention better.
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|Those companies had to know that the people that run the FCC would be looking forward to reducing their own bills.
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|Cool so I don't even have DSL with Verizon but I will see a fee on my cell phone bill?
I hope not. Luckily I have 25 days left and then I'm out of my contract with Verizon.
Time to switch providers. Not just because of this....just because Verizon has been a total nightmare when it comes to customer service.
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|I am so glad that government agency for once that do something for it's citizen so soon.
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|They haven't actually DONE anything!
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|Oho - I just saw about 2 minutes ago that BellSouth has decided to NOT include that fee after the FCC action - so maybe there's hope!
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|Yes, it's surprising they were so quick to voice their concerns on this one. I hope they will actually push to do something about it.
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|Huh? I wasn't charged any new fees on my 8/22 invoice. My $29.99 service that used to cost $32.13 with the USF fee, was billed at $29.99 with nothing additional. Have any of the complainers actually looked at their bill?
Don't believe it? A copy of the invoice (minus account numbers, etc.) is here:
http://makeashorterlink.com/?T555242AD
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|Thats pretty odd, since on all 3 of my phone bills I had a notice from Verizon saying they would be adding the fee.
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|because the new fee kick in on 8/26.
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|That would explain quite a bit...
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|That and it must be nice living tax free in DE..
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|...And by "very upset" we mean that we will be launching some petty commitee to investigate and ultimately find that Verizon is justified in their actions. We just want to maintain the naive American notion that their government really cares for their well being.
After all, why should the Oil companies be the only ones raking consumers over the coals?
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|Yep, the oil companies are monstrous demons that went to great illegal lengths to secure profits of mere pennies per dollar.
Go away.
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|Remember, things are only illegal if the government says that you are doing something illegal.
http://www.washingtonpos...28/AR2005072802085.html
Desides, I think I'll stay. Go back to your flock little sheep.
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|Then you're in good company; there are quite a lot of conspiratorial nuts here.
Way to totally miss the point. Go look at the profit per dollar, not total profit made. As it stands, you're complaining about companies making more money when prices go up--you know, the logical outcome of higher prices.
Educate yourself.
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|Yep - as someone recently said quite eloquently - " the problem with conspiracy theories is that they're a little vague on the facts"
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|Most of life is a little vague on facts.
Sidenote: I am little paranoid, but I am too lazy to care or do anything about it ;)
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|even a penny on the dollar when a trillion dollars of gas is sold adds up to quite a bit in my book. or maybe $10 billion isnt alot of money to you?
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|Of course it adds up. That's common sense when dealing with numbers as large as the corporations in question routinely account for. You aren't breaking any new intellectual ground here.
Gouging is not "oh wow, look at how much money they're making" as you and most liberals tend to believe. Gouging is ascertained by looking at how much percentage of every dollar a company takes in counts towards profit. Example: Exxon-Mobil makes profit of 9.5 cents per every earned dollar. 10% profit. From which parallel reality do you hail from where 10% is considered gouging?
Exxon-Mobil earned $8.4 billion in Q1 2006. They sent the federal government $25 billion in gasoline taxes which you and I paid for. The federal government takes 18 cents per dollar in gasoline taxes, while Exxon-Mobil takes half that in profit, and the oil company is gouging?
Get your facts and priorities straight.
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