We were the first website to note that Verizon had stopped charging users the FUSF fee (DSL providers no longer have to pay into the USF), but had replaced it with a strange "supplier surcharge" fee that left customers paying the same amount. Verizon has attempted to defend the "un-fee", but it's clear the fee is simply a rate hike dressed up as a below the line, unadvertised itemized charge. Because customers were left paying roughly the same, Verizon execs apparently assumed nobody really would care.

Now CNET's Marguerite Reardon reports that BellSouth has joined Verizon in the unfee game. The company, despite no longer having to pay into the USF, is keeping the $2.97 fee in place. BellSouth tells CNET their fee aims to "offset costs incurred in complying with regulatory obligations and other expenses," despite the fact BellSouth has enjoyed ample deregulation under the current administration.

The fee "also recovers costs associated with additional systems necessitated by federal regulation, as well as costs associated with monitoring, participating in and complying with regulatory proceedings, and other network and servicing requirements," BellSouth informs.

"They made similar arguments when they lobbied to be excused from USF regulatory obligations that doing so would benefit consumers," says Mark Cooper of the Consumer Federation of America (an actual consumer group since 1968, for those wondering). "And here they are, free from those regulations, and they still stick it to the consumer."

Our users report that DSL provider Speakeasy is also playing the itemized unfee game with their customers. While Speakeasy has eliminated the "Federal regulatory fee" on customer bills, they've simply jacked up the DSL & VoIP regulatory fees customers pay.

AT&T and Qwest have yet to join their fellow DSL providers in the tactic.