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story category FCC 'Investigating' Bogus DSL Fees
Place your bets: action or inaction?
(old news - 02:00PM Friday Aug 25 2006)
tags: fcc · business · telco · trouble
We've been discussing several DSL providers' (Verizon, Speakeasy, BellSouth) attempts to hit DSL customers with bogus charges all week (see here, here, and here), in order to capitalize on the removal of the FUSF fee on DSL bills. The move takes advantage of consumers by burying a rate hike in a below the line un-advertised charge as a completely bogus "fee", an act that should get a slap on the nose by any functional regulatory authority. Reuters and the Wall Street Journal report that gossip indicates the FCC is planning to investigate the new fees. This will be a serious litmus test for how beholden the FCC is to industry lobbyists.

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  5. Real Consumer Group Takes Aim At Fake Ones
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Forums » FCC 'Investigating' Bogus DSL Fees
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Post a:

PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

I vote inaction

or a strongly worded but ultimately ineffectial rebuttal to the practice.
--
Mass Transit Sucks!

chd176

join:2003-01-10
Winfield, AL

Re: I vote inaction

Honestly I don't think anything will be done. If anything the wording in the TOS for DSL will be re-worded to included a mention of the fee. After all this IS corporate America...
--
1.5/256 CenturyTel PPPoE DSL line

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: I vote inaction

SE already has a line in the TOS that the Price Guarantee only applies to the amount to get their service - anything else is excluded from the guarantee and this would be excluded...

I also do not consider it a price increase since the price of my service has not gone up a penny - it is still the same as when the FUSF was charged. Now if I was paying $1.00 more than when I was with the FUSF - that would be a rate increase...

It will cost a pretty penny to bring out DSL2 for SE and I don't mind it if it will help secure loans to offer DSL2 or to pay for it - even though I won't really be affected by DSL2 since I am to far away fromthe CO...
--
Brian

"Some people are like Slinkies...
Not really good for anything......
But they still bring a smile to your face when you push them down a flight of stairs."

RealoRc
Premium
join:2003-01-25
Brooklyn, NY

Re: I vote inaction

So there is no price increase if the clothes you buy has sales tax removed but you still pay the same price before the tax break?

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: I vote inaction

I still pay the exact same amout as before - so no - to me it is not a increase over and above what I paid before. It is all semantics at that level...

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ

Re: I vote inaction

So tomorrow, if oil dropped to $20 a barrel for the next year, you'd be happy paying $3 a gallon for gas, because that's what you pay now?

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

1 edit

Re: I vote inaction

I don't pay $3 a gal now... And gas is a apples to oranges comparison as the price of gas depends on many, many more things than an internet connection.
yac898

join:2002-12-06
Stony Plain, AB

Re: I vote inaction

as a SBC shareholder i applaud your stance. we took in billions and improving our bottom line with that free cash. since we cant blame it on the gov't any more, we NEED more people like you.
(all kidding aside, you're really not serious, are you?)

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ
Doesn't matter what you pay now, nor what the price depends on. If the price was supposed to drop, would you be happy paying the price you currently pay, or the lower price. Easy yes or no answer.

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: I vote inaction

Who said the price was "supposed" to drop??? Aribitrary folks - certainly the FCC deed not deem prices would drop... all subjective...

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ

Re: I vote inaction

Well, since my price will drop due to my contract, I'll take the extra 2 dollars and change this month and buy you some KY since you seem to like them bending you over and sticking it to ya.

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: I vote inaction

None needed thanks... It is just a difference in perspective...

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ

Re: I vote inaction

Yeah, I guess I got a little carried away, lol. No real offense meant.

knightmb
Everybody Lies

join:2003-12-01
Franklin, TN
My vote as well, if they did do something (fines, etc) I would be really surprised but at least have hope then in the FCC.

Karl Bode
News Guy
join:2000-03-02
Let me guess: Some babbling free-market manifesto suggesting inaction by Kev "think tank" Martin, followed up by a lovely, tersely worded pdf from Commissioner "I'm just a Democrat, what can I do?" Copps saying they should act but won't?

tsu9

join:2001-08-17
Wheeling, IL
I also vote inaction.

AtlGuy

join:2000-10-17
Marietta, GA
I'm with you all, I vote inaction as well.

cableties
Premium
join:2005-01-27
Let's ask the FCC about this...

skinnyjm

join:2002-08-25
Fort Worth, TX

I vote inaction also. The FCC will say the provider can charge whatever the market will bear.
So...the provider may remove the "Line item" charge and raise the monthly price.
But as mentioned elsewhere at broadbandreports, DSL remains the best BANG for your buck!
(IMHO, as always!)
fiberguy
My views are my own.
Premium
join:2005-05-20


1 edit
Inaction - there's nothing that the FCC can do... it's an unregulated service and they are free to place what ever fees or charge what they want for the service.

The fee is bogus, but the FCCs out of it arena on this one. Nice horse and pony show, though.

HOWEVER, there is one thing that SHOULD be done and I am not sure if people are over looking this.

The fee dissapears from existence, then this new one shows up. Obviously Verizon took a hit by loosing the original fee, right? So they needed to make up for it.

Wasn't the original fee a pass through fee? If verizon took a "hit" then what were they doing with the original fee to begin with? THAT is what needs to be investigated... not the new fee itself.
markofmayhem

join:2004-04-08
Pittsburgh, PA

Re: I vote inaction

I vote for something more sinister. I bet the FCC comes up with a new fee to pay for an investigative body for bogus fees!
squison

join:2001-07-07
Decatur, GA
I think it's less of a "hit" more of: "If our customers are used to paying $xx.xx on their bill, they'll still pay it, even if it's to us instead of the government."

FLea973
Premium
join:2001-02-27
Morristown, NJ
clubs:

said by fiberguy See Profile :

Obviously Verizon took a hit by loosing the original fee, right? So they needed to make up for it.

Wasn't the original fee a pass through fee? If verizon took a "hit" then what were they doing with the original fee to begin with? THAT is what needs to be investigated... not the new fee itself.
Actually, they and every telecom charging the USF probably DID take a hit by the removal of this "pass-through" fee. I do not know the specifics, yes, they had to remit what they collected for the USF to the Treasury.... but, how often? We all paid the fee monthly... if the telcos only had to remit those fees to the government quarterly, semiannually or annually instead of monthly, that is one big boat load of interest income they were making. Of course, now they get both the interest AND the fee....
--
To the past, or to the future. To an age when thought is free. From the Age of Big Brother, from the Age of the Thought Police, from a dead man... greetings
MontyMan
Premium
join:2004-08-16
Parkville, MD
I vote settlement of three dollars off coupons for all...

Quickly followed by a new five dollar FCC coupon recovery fee.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
The FCC will complain loudly but will actually sanction a new loophole that legitimizes the bogus fees. End result: The price hikes stay.

tazman69
Safety Guy

join:2000-12-22
Charles Town, WV

They will do nothing.

The FCC is as useful as ti*s on a boar.

csiemers

join:2000-09-16
Portland, OR

Committee

Let's form a Committee to discuss the issue.

Varlik
Without Honor You Will Never Be Free
Premium
join:2002-01-06
Anderson, SC

My prediction on what will be said.

My money's on "It's too soon to make a decision. We really need to wait awhile and see where things go before we take any actions. To do other wise could be rash and hasty and hurt potential growth."
--
"Sir SIR! We don't use DHCP servers. We only use IBM & Microsoft servers." From there my call to tech support went steadily downhill.

skinnyjm

join:2002-08-25
Fort Worth, TX

at&t

Anyone have any idea what at&t is going to do???
I'm hoping they decide to be the "good guy" and not do this. (My fingers are crossed )
Indymike

join:2004-12-06
Indianapolis, IN
·Covad Communications

Re: at&t

LMAO!

Don't hold your breath for AT&T to be the good guy here.

After they got caught wire-tapping w/o a warrant, they changed their TOS so that they could do whatever they wanted with your customer information. They did this via a change in their "privacy" policy, so that you can't sue them if they do it again.

LMAO "good guy"

Varlik
Without Honor You Will Never Be Free
Premium
join:2002-01-06
Anderson, SC

said by skinnyjm See Profile :

I'm hoping they decide to be the "good guy" and not do this. (My fingers are crossed )
To dream the impossible dream. This is AT&T we're talking about they're closer now then ever to being like MA Bell of old. If they had their way we would have to buy all our phones from their stores again just like in the old days before they were broken up.

»video.google.com/videoplay?docid···04204785

--
"Sir SIR! We don't use DHCP servers. We only use IBM & Microsoft servers." From there my call to tech support went steadily downhill.

jazzy_

join:2004-01-27
Charleston, SC

2 edits

Re: at&t

lol love the clip

enrolk

join:2002-04-23
Murrells Inlet, SC

That skit say's it all. There is nothing anyone can do to change it either. You will pay what ever they ask in order to communicate with the rest of the world. PERIOD.
Live with it, or use the 2 cups and a string.

We will never again see what used to be free.
Democracy in action!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest

said by skinnyjm See Profile :

Anyone have any idea what at&t is going to do???
I'm hoping they decide to be the "good guy" and not do this. (My fingers are crossed )
According to my latest bill, they are doing nothing, ie, as in they are still charging you a FUSF fee on DSL even though they aren't supposed too.

So, so far, looks like strike one on the "Good guy" part.

Actually, since going to at&t they've pulled all kinds of shyte. For me they are already on about strike 10... but hey.. they are the phone company. At this time I don't have an option as to dumping them.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
moonpuppy

join:2000-08-21
Glen Burnie, MD

Inaction....

Lip service at best.
Eric Martin

join:2005-06-19
66308

Complaint to the consumer federation ?

It would be nice if we could POOL some resources into suing them for collusion.

trisomy
Premium
join:2002-05-23
Houston, TX

Re: Complaint to the consumer federation ?

said by Eric Martin See Profile :

It would be nice if we could POOL some resources into suing them for collusion.
I think you're being collusive!!!

trisomy
Premium
join:2002-05-23
Houston, TX

1 edit
Sorry...action.
Techman21

join:2005-04-14
Richmond, VA

Don't bow out....

I'd rather take the stand point of they better do something or someone is not getting a vote this fall. Come on people. If you just bow out and say "oh well they won't do anything". Well of course they won't...not unless people call/write to bitch about the issue. This goes for both the FCC AND your congressmen. If you write/email/phone they do hear you whether you really talk to the representative or not...keep in mind your local rep is only in office for 2 years then they have to get re-elected...senators are in for 6 so they get a somewhat free ride once they are in, but come voting season they better listen to their constituents or face the chopping block. Just my 0.02.

brooklynman4

join:2004-09-07
Brooklyn, NY

Re: Don't bow out....

Hey if the pocket is getting bigger by the day would u let them allow bogus fees??

pb5k
more cowbell
Premium
join:2005-11-16
Glendale, AZ
·Cox HSI

The whole problem here is that the FCC is composed of un-elected officials. Hence they are safely insulated from the desires of us plebs.

Sure I could write some letters, which if I am fortunate will be read by an aide who will send me Form Letter A55-H013 to me telling me how great this will ultimately be for me.

Besides, devoting resources to this would leave us vulnerable to nipples and other heinous things.


--
"When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.'" --
Theodore Roosevelt

Bobcat
Premium
join:2001-02-04
Bedminster, NJ

Still cheaper than cable

Even with the fee, it's still about $150 per year cheaper than cable internet for me.

tsu9

join:2001-08-17
Wheeling, IL

Re: Still cheaper than cable

'doesn't mean it is right.
Sammer

join:2005-12-22
Canonsburg, PA

FCC isn't happy about these fees.

IMHO the FCC wouldn't bother to investigate if they weren't unhappy about these bogus fees. I vote for action.
apollo80

join:2002-01-31
Richmond, VA

Re: FCC isn't happy about these fees.

Sammer said:

"IMHO the FCC wouldn't bother to investigate if they weren't unhappy about these bogus fees. I vote for action."

The only reason they are doing the investigation is to pull a UN and act like they actually have some kind of duty to do so. It'll still end up being inaction. Like the UN in general...
Sammer

join:2005-12-22
Canonsburg, PA

There will be action

The reason I voted for action is that the telcos forgot a fundamental law of politics here. Don't make those in power look bad. Note how everyone who votes inaction thinks the FCC Commissioners are ineffective, incompetent, crooked, or just puppets. This isn't an issue where there are honest differences of opinion, Verizon and BellSouth stepped in some deep stuff this time.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Re: Still cheaper than cable

I have FiOS which is unaffected by this ruling. So why should I care. Right?
--
Quis custodiet custodes ipsos?

alex goldman

@internet.com

the maximum fine

Let's say Verizon is earning $100 million per year and operate in 20 states.

_If_ the FCC maximum fine remains $1.2 million per state (see »www.isp-planet.com/news/2002/sbc_021011.html)

then Verizon will be fined $24 million for an action that earns them $100 million. . .

The numbers are very rough, but I expect the result to resemble this off the cuff guess.

Derch
Premium
join:2004-10-16
Tulsa, OK

Come ride on our tubes!

Hey everyone, maybe this might be a fee to support Senator Asshat Steven's tube theory!

In all seriousness, I highly doubt that the FCC will do anything to protect consumers. This is yet another nail in the bandwidth coffin.

Speedy8
Premium
join:2002-08-22
Alliance, OH
clubs:

Sigh

I don't see why we can't just get a law passed where all companies have to include all fees and taxes in their advertised price.

See 10 replies to this post
SFR

join:2006-07-14

BellSouth is dropping the fee

»news.yahoo.com/s/nm/20060825/wr_···fee_dc_1
Now, Verizon should do the same.

I'm on FIOS and this doesn't effect me. But this is ridiculous. Consider many DSL customers who has no idea about FCC dropping the charge but Verizon keep it on. BAD business practice and is stealing.

It's not about $2.99. It's about fairness. My applause for FCC to stepping in.

mr sean
Professional Infidel
Premium,ExMod 2001-07
join:2001-04-03
N. Absentia
clubs:

Re: BellSouth is dropping the fee

»Bell South Backs Out Bogus Fee
Tom517

join:2006-07-13
Greenville, SC

Begging for regulation

When companies like at&t and Verizon start adding ad-hoc fees, they are just begging for someone to step in and say "Let's regulate these guys."

God
IN Vilseck Germany
Premium
join:2002-07-01
Colorado Springs, CO
clubs:

Re: Begging for regulation

said by Tom517 See Profile :

When companies like at&t and Verizon start adding ad-hoc fees, they are just begging for someone to step in and say "Let's regulate these guys."
it would only make sense for it to happen but well these companies know who to pay off .....
--
Currently stuck in a foreign country thanks to good old Uncle Sam, member of Cco 1/2 Stryker Cavalry Regiment. Sucks being attached to a cav unit when you are infantry =\

richk_1957
If ..Then..Else
Premium
join:2001-04-11
Minas Tirith

The FCC will moan, groan & make threatening noises

But in the end nothing will be done.

The FCC used to have regulatory power & teeth, but the last couple commissioners were such wuses so that's gone.
rid0617

join:2003-07-20
Greer, SC

Re: The FCC will moan, groan & make threatening noises

Washington — Under pressure from the Federal Communications Commission, BellSouth said Friday that it will stop collecting a $2.97 per month regulatory fee from its high-speed Internet customers.

The company made the announcement after learning the FCC had begun investigating whether the carrier and Verizon Communications were violating federal truth-in-billing laws.

BellSouth said it is "immediately eliminating" the fee that was "designed to recover a number of costs remaining from previous regulatory obligations and other network expenses."

The company said most of BellSouth's DSL Internet service customers will see the change on their bills within a week.

Both companies have been accused of continuing to collect regulatory fees that the government is no longer assessing.

The FCC confirmed Friday that "letters of inquiry" had been mailed to the two carriers seeking information about their billing practices.

At issue is the Universal Service Fund, a fee the government imposes on carriers to subsidize communications services in rural and low-income areas. Carriers pass the charge along to customers and usually itemize it on their bills.

FCC spokeswoman Tamara Lipper said Friday that the agency prefers to let competitive forces govern the markets with minimum government regulation but is "willing and quick to act to protect consumers."

The FCC decided last year that carriers would no longer be required to collect the fee for high-speed digital subscriber line (DSL) service starting Aug. 14, 2006.

»www.ajc.com/business/content/bus···one.html
Skippy25

join:2000-09-13
Hazelwood, MO

Re: The FCC will moan, groan & make threatening noises

I would suggest they stopped it so fast because they are afraid of what other fraudulant things they may find going on there.

I think the investigation should continue and maybe should focus on price gouging.
Forums » FCC 'Investigating' Bogus DSL Fees


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