Verizon Drops DSL Surcharge
Facing a possible FCC slap, Verizon Wed. dropped a DSL surcharge it had imposed in late Aug., shortly after the FCC removed a similar-sized federal DSL fee. The FCC sent a letter to Verizon on Fri. asking why it hit customers with a new fee just as the FCC freed customers of the universal service fee on DSL service (WID Aug 28 p2). BellSouth killed a comparable fee Fri. as the FCC was preparing the letter that originally was intended for both Bell companies.
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FCC Chmn. Martin said he was pleased Verizon and BellSouth eliminated the fees because “consumers should receive the benefits of the Commission’s action last summer to remove regulations imposed on DSL service.” FCC Comr. Tate said the Verizon announcement was “good news” for consumers because they now can “begin to reap the benefits of the Commission’s broadband deregulation decision.” “Chalk one up for consumers,” said FCC Comr. Copps: “Getting this out in the open put an end to this charade of new surcharges.” Consumers Union said: “[I]t’s unfortunate that it took the threat of a federal inquiry… for Verizon and BellSouth to scrap their plans… to confiscate savings due consumers from the elimination of federal regulatory fees on DSL service.”
The FCC’s deregulation of broadband Internet access service last summer resulted in freeing the Bells of Universal Service Fund payments on DSL revenue starting 2 weeks ago. The FCC had expected the move to cut consumer costs because the Bells have been passing the fee through to customers. But Verizon and BellSouth shortly afterward instituted their own DSL fees for different purposes.
Verizon said it will give a credit to the “small number of customers who have already been billed for the surcharge.” The company said it eliminated the charge in response to customer concerns. “We have listened to our customers,” said Bob Ingalls, Verizon Telecom chief marketing officer. The company said the surcharge was intended for DSL “customers who do not also subscribe to Verizon’s traditional phone service.”