AT&T U-verse → [VDSL] Why did Cost Assessment increase by 335% this month?

You know it use to be that the "cost of doing business" was factored into the rates you charged your customers. Now they charge the same prices and pass the cost onto the customers.
We are getting screwed and we are allowing it.

My .02

as the old saying goes " they need more $$$ because they're losing at the track ....... "

Because they want to increase profit. Simple answer

Sure, but they can't provide even terrible customer service, it's worse than that.

Unfettered greed.

I'm not seeing these charges in my state, so, it must have something to do with assessments in Wisconsin that aren't present elsewhere.

SWB figured out they could take all the lessons Big Blue learned as a regulated monopoly, and apply them in the un- and less-regulated market, and they would just keep making more money: "Customers have either no choice or a very similar choice, regulators won't do anything unless we really screw up. We already have zero goodwill from customers, and our polling proves it, so we have nothing to lose."

I never have trouble with the front-line workers - they are following the script and treating me with the utmost courtesy while their bosses listen to them spank me and thank me "to improve customer service."

Every so often there's an unguarded in-person moment, when a tech says something that make me think they are in the same boat. But then I realize they're getting paid to be spanked. I do wish the Vice Squad would run a sting and help me get out of this relationship.

But seriously, I do wonder if anybody has gotten a straight answer on this.

I don't blame the rank and file and for the most part these Tier 1 people are pleasant and polite, and try to act professionally.

However especially when it comes to sales they LIE, often and repeatedly and this causes NO end of problems with your order.

It's OBVIOUS that the problem comes from the TOP.
As in Randall Stephenson.

They did just buy Time Warner. New owner = new assessed value on the real estate.

This is what I see.
»docs.legis.wisconsin.gov ··· I/66/2/c

quote:

---

Taxable services. Receipts that are subject to Wisconsin sales and use tax include receipts from the following services, if the services are sourced to Wisconsin as provided in sub
(c) Internet access services.

---

In all states, we're seeing the $40 internet charge. But, you got stuff in your state that I don't see charged in my state. I think Wisconsin is responsible insofar as these charges are concerned. I think your state is tax happy.

Now, if they flat rate you at $40 even though there are these additional charges, it would in a sense make users in other states paying the same $40 donors to your service to subsidize your state taxes. There is probably some other property tax that is disproportionate to what is charged in other states that is causing that property tax assessment.

Yes, I understand that AT&T wants a consistent profit in every taxing jurisdiction, but the problem is that there's no way for anyone outside AT&T to tell if 2% of gross sales was not enough to cover property taxes, or if 6.69% is too much. Without the PSC regulating this service, they can charge whatever they want.

It used to be that all regulated telecom facilities were exempt from local property taxes, but utilities operating under PSC rules paid their property taxes directly to the state. These were based on valuation assessments by the state (perhaps based on utility "appraisals"), and the state apportioned them and sent them to the local taxing authorities. I had requested the figures from the state, and it appeared to be a sweetheart deal. This was before they had all the VRADs deployed, and I seem to recall that created an issue of whether those should be taxed as plant or real estate.

I haven't followed up on that for years, but I seem to recall that the values of plant and real estate were very low, or subject to depreciation, something like that. Thanks for the reminder, I'd totally forgotten, and I'll have to see if I still have that spreadsheet filed away somewhere.

Anyway, with the new state franchising laws (written mostly by lobbyists in the early 10s), maybe they changed the formulas.

Sales & use tax has nothing to do with this. Those are separate line items, as seen on my bill. Sure (as a property owner who can probably no longer itemize), having a higher sales tax and lowering property tax would be fine with me, but that's generally seen as regressive. Sales tax is only 5.6% in MKE county, lower than most out-of-state jurisdictions that I visit.

Here in IL (chicago suburbs) we have a 10.25% sales tax rate. Believe it or not, internet per say is not taxed at all. I pay a flat $80 to att each month with no addons.

Don't worry, I'm sure that is soon to change. Between a new governor and a soon-to-be new mayor in Chicago, they are all looking for ways to dig much deeper into the average Joe's pockets (not pocket. Plural. they will dig into each and every orifice they can).

All in the name of heeding the IL Supreme Court ruling that pension benefits for public workers cannot be diminished in any way without a change to the State constitution.

Highly doubt there will be anything remaining that doesn't get taxed. When the tumbleweeds roll through and all that remains are the public workers waiting for their pensions with no one to foot the bill, then things MIGHT change.

That is odd. Here in Ohio the "state cost recovery fee" is 10 cents on my $40 internet bill. I'll see if that changes on the next one.

Based on the number of customers that stay and live with bad service, it’s seems to me T has no reason to improve service. Since the SBC purchases in 2000 it has been a race to see what the minimum level of service and repair will be tolerated by customers at the highest pricing point they are willing to continue to pay. I guess based on T’s earnings reports, they haven’t found that limit yet.

In effect, they're begging to be regulated and go back to the plush Rate of Return lifestyle, but there's almost no chance of that happening, so this is just a next-best option for management.

Really about the only advantage they have right now is price. I got 50/10 VDSL2 service back when it was $40 which I considered a decent price. The current new customer price of $50 isn't so attractive, and is even less so if I could only get 25/5 or worse. My pricing is about to run out, and unless they were to offer me $40 for another year, I'm probably gone. Fiber based service might be worth $50+ to me but not DSL.

I do take care of a small business office that also has 50/10 VDSL2, and at $40 or $50 it's still an OK deal vs. the increased cost of business class cable. Same issue though, take that price advantage away and there's really no reason to pay the same price as cable for inferior speed and dealing with the buggy gateways.

No way regulation ever comes back. T would demand equal regulation for every other type of internet provider as well. I don’t see the government wanting to go down the road of regulating WISPs and any other small provider along with comcast. Utilities racing to the bottom all falls on the shoulders of judge green. At least as a monopoly the government had the ability to hold them to the fire. As an unregulated for profit business, the government has little to no ability to do anything to them.

Att is over 1 Trillion dollars in debt

Buy one less slurpee a month and you'll be ahead of the game!

must be nice to live a state with 10.25% and state income tax. Texas has around 8.0% to 8.25% + property taxes.

You live in one of the lucky states that does not have an exemption to the tax freedom act. I'm sure IL would love to tax internet service if they could. WI and a few other states are allowed to charge tax on internet service.

IL makes up for it by taxing us [to death] in other ways - such as the higher sales tax rate. Also as I recall no toll roads in WI. Higher gas prices in IL too. I'm sure there's other examples too. Probably comes out a wash at the end. The taxing authorities always get their kilo of flesh.

Either the Ohio "state cost recovery fee" is going up 1 cent to 11 cents, or it's a percentage charge and went up this month because my bill increased slightly due to my $10 12-month discount rolling off 4 days before the bill cycle date.