EGeezer
Summertime -
Premium
join:2002-08-04
Country!
 ·Callcentric
 ·RoadRunner Cable
·AT&T CallVantage
| reply to Robbob90210
Re: [Lingo] is going to charge Excise and Reg Tax
quote:
What is the Regulatory Recovery Fee?
The Lingo service regulatory recovery fee is $1.50 per phone number. This fee is charged to our Lingo customers to recover the costs of certain regulatory and compliance requirements imposed, or expected to be imposed, on us by the federal government or various states and localities. These costs can include charges associated with supporting services such as state or local universal service, emergency calling, law enforcement, disability compliance and certain tax requirements. Your Regulatory Recovery Fee reflects a $1.50 charge for each domestic or international phone number, including primary voice, secondary voice, and fax numbers.
This reads more like "slush fund" , or the ADP surcharge car dealers put on a hot selling model's sticker.
ADP = Added Dealer Profit
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N-X-211 ====== N-328KF |
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priller
join:2000-10-20
Gainesville, VA
·voip.ms
·Callcentric
·Vonage
·callwithus
1 edit | reply to Network Guy
said by Network Guy  :Anyone know Broadvox's stance on this? »Re: I am against regulation of VoIP - no Broadvox |
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bbrlogue
Learning New Things Daily
Premium
join:2003-12-07
Alexandria, VA
| reply to Robbob90210
To be fair, beside AT&T CV mentioned above, Vonage already does this too:
Charges Detail:
International Calls for 1-(703)-xxx-xxxx (02/Dec-01/Jan) $0.95
Overage Calls for 1-(703)-xxx-xxxx (02/Dec-01/Jan) $0.08
Residential Basic 500 for 1-(703)-xxx-xxxx (02/Jan-01/Feb) $14.99
FET Tax $0.48
Regulatory Recovery Fee $1.50
Total Amount $18.00
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lobster11
join:2004-01-19
Brunswick, ME | reply to Network Guy
That $1.50 per month they are collecting for "regulatory recovery" is certainly a rip-off. |
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Network Guy
join:2000-08-25
New York
·PHONE POWER
·Broadvox Direct
 ·Verizon Online DSL
| reply to priller
Well see, I like his explanation on why they'd collect that, and do agree. Not like it's astronomical fees that nearly double your bill like it happens with my POTS account, and it actually goes toward supporting the service, not supporting your local congressman's pockets. |
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artisticcheese
join:2004-11-09
Carrollton, TX
·Future Nine Corpor..
·VoiceStick
| From Sunrocket TOS
SunRocket Bottom-Line Pricing. If your service plan qualifies for SunRocket Bottom-Line Pricing, all applicable federal, state, local or other governmental taxes and charges will be included in the Bottom-Line Price specified for your service plan. The specified Bottom-Line Price represents the sum of SunRocket effective charges and all applicable governmental charges.
My understanding since they are already including taxes and did not raise price recently (to offset changed regulation to tax service) it means that there were no changes on tax front recently (which appears to be the case with Lingo which claims that there were changes). |
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Network Guy
join:2000-08-25
New York
·PHONE POWER
·Broadvox Direct
·Verizon Online DSL
1 edit | Dude, you wanna pay the taxes I pay on my residential POTS line? There's at least five different local government entities collecting, FIVE!!! It all adds up close to $20 per month, and the plan I subscribe to is $20!!
I still say the $3 they're collecting isn't bad, if they're really collecting it for what they say they're collecting it for. |
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artisticcheese
join:2004-11-09
Carrollton, TX
·Future Nine Corpor..
·VoiceStick
| So what you are saying is.
I pay more taxes on POTS line then on VOIP or so taxing VOIP is ok.
Secondly since they collect tax for good reason it's ok as well.
The problem with this is that if I want to help my local agencies or disabled organisation I can donate directly. I don't need my phone company make that decision for me.
The only explanation which I'll accept is that they are required to do it by law which does not seems to be a case right now. |
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csbadboyz
Csbadboyz
Premium
join:2003-11-14
Sanford, FL | reply to Network Guy
I will still pay Lingo, before I pay the local scum phone company.
Thanks for being there Lingo
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VoIP on FWD & Lingo |
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Network Guy
join:2000-08-25
New York
·PHONE POWER
·Broadvox Direct
·Verizon Online DSL
| reply to artisticcheese
Better hope that the FCC continues to plunk down your local pol's efforts to tax you up the arse any further. It's gonna happen sooner or later, might as well start accepting it.
And yes I agree.. I'd rather give Broadvox those tax dollars than to give them to Verizon.
Verizon can experience another 9/11 for all I care. |
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Trimline
Premium
join:2004-10-24
Orlando, FL
·Callcentric
·AT&T Southeast
·RoadRunner Cable
| reply to Robbob90210
Well at least Bellsouth is honest about the "fee". And your right, it is a "pocket" profit for Lingo.
BellSouth imposes a Regulatory Cost Recovery Fee of $2.97 per month to offset costs incurred in complying with regulatory obligations and includes offsetting BellSouth's Universal Service Fund payments for the DSL used in our FastAccess DSL Service and recovery of other expenses incurred to support specific regulatory requirements unique to BellSouth as a DSL provider. This fee is not a tax or charge imposed by a government entity. |
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caseydoug
join:2001-08-14
Seattle, WA
| reply to Robbob90210
There is a big difference between the regulatory recovery fee charged by your local phone company and that charged by Lingo. As a regulated monopoly, the phone company uses "cost of service" pricing, in which it must justify all of its expected costs to a regulatory agency and then is allowed to charge a rate anticipated to recover those costs, plus an approved return on its investment. While this formula does not guarantee it a profit (since all ratemaking is prospective), it does reduce the risk to investors. In exchange, the consumer gets some protection against the phone company's exercise of monopoly power in its pricing decisions.
By contrast, Lingo is allowed simply to charge what the market will bear. If we don't like it, we can take our business elsewhere.
While Lingo's terms of service do allow them to impose Taxes, we should distinguish between taxes they are required to collect (i.e., where the subscriber is the taxpayer), and taxes imposed upon them, or which might be imposed upon them. I feel no obligation to pay more simply because Lingo's costs go up.
The question is, what to do about it? The fact is, Lingo's service agreement does not prevent them from raising their prices whenever they see fit -- and I see this as nothing more than a price increase. Similarly, there is nothing in the service agreement that requires us to continue as subscribers.
The ONLY question is whether Lingo has a right to charge a termination fee if we quit. I believe that is something of an open question. However, we certainly have a good argument that we are not obligated to pay the termination fee if Lingo raises its prices on account of taxes it is not required to collect. Unless this is litigated as a class action, there is simply not enough money involved for any subscriber to test this theory in court. Similarly, it would not be worth it for Lingo to take someone to court for a $40 termination fee.
Therefore, if you want to drop your subscription on account of this price increase, simply tell your credit card company that you no longer authorize Lingo to charge the monthly service fee, pay what you legitimately owe, and cancel your service. |
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robbob90210
@attbi.co
| Guys, Guys.
Unless I havent been in the US long enough, but in AUS, if you collect a tax, then you pay this to the Government. If you call something a Tax and keep it yourself, well this is fraud.
If your not imposed by the Govt to collect a Tax, then you are legally not allowed to.
I dont understand the in's and out's of the POTS system and charges here, but to me it like USPS trying to charge me for my email.
Robert |
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ejrobinson
Premium
join:2003-05-16
Miami Beach, FL | reply to Robbob90210
My main complaint is the imposition of that $1.50 on virtual numbers, especially the offshore ones. I can't imagine the state of virginia, where lingo is domiciled, taxing a virtual number in london or paris.
-er |
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ceocio
join:2004-04-16
Columbus, OH
| reply to Robbob90210
I got the silly email too.
Lingo wants to raise price? Fine, just come right out and say it!..Lingo wants a better bottom line to please its investoers? I'm all for that.
But don't tell me they are suddenly "required" by the federal governemnt to collect taxes and "regulatory recorvery fee", which they are mostly likely gonna pocket for themselves. Since when voip legislation changed? I thought vonage just won another legal battle few days ago.... |
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sheik28
Premium
join:2000-10-15
New York, NY
| reply to Robbob90210
Just as an FYI. This is taken straight from my P8 bill...
Freedom Unlimited Monthly Fee For 2/1/2005 - 2/28/2005
Account Balance $19.95
Federal Excise Tax (3% FET) $0.60
Total Bill $20.55
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There is no such thing as a stupid question, and yes, the camel types.  |
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vonsen
Just Because
Premium
join:2005-01-06
| reply to Robbob90210
Lingo is being very dishonest in their stated reasons for imposing these fees. The government is not forcing them to collect any tax at this time. The FCC has issued several recent decisions, none of which mandate that taxes have to be collected at this time. Lingo is simply imposing them in anticipation that they will be required to collect taxes at some future time. To label it as something that the government has compelled them to do is untrue and deceptive.
Moreover, the "regulatory recovery fee" is nothing more than a slush fund for lingo. There is no requirement to collect any such fee. It is entirely descretanary on lingo's part. Having sorted out many of their launch problems, they are feeling comfortable enough to slap a 15% surcharge on everyone who is locked into a one year committment. 15% is a large step toward the only reason that I signed up (lower costs). Lingo thinks that few will jump ship over 15% PLUS tax. If broadvox stays the course and does not follow suit, I for one, will get rid of lingo.
Nice. |
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laserjobs
Premium
join:2004-05-02
Las Vegas, NV | reply to Robbob90210
Nicely said vonsen. I am thinking of dumping Lingo over this as well. |
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the_glassman
join:2004-11-23
Binghamton, NY | reply to Robbob90210
Time for me to drop my service package or switch providers or drop VOIP all together. I wish more people used Skype including business. I can't express how pissed off I am regarding this. I dropped my landline to avoid this crap. |
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usa2k
Please PRAY for Rebekah
Premium,MVM
join:2003-01-26
Canton, MI
clubs:
·VOIPo
·WOW Internet and C..
·Broadvox Direct
|  Re: [Lingo] to charge Excise and Reg Tax
Two years ago I was happy to pay $40 a month with Vonage. I was saving $80 a month verses SBC and ATT LD back then. With the more competitive pricing we have now, we still have a good deal.
Still, you can vote with your wallet, and go anywhere you wish. I did not leave Vonage because of fees. I just found a better deal from a solid service provider.
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Jim -- USA2K
SEE: |DCWU |FAH |PICS |BVX REVIEW |
FWD, Vonage 01/03 to 12/04, & BVX 07/04 to now |
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