Teletruth Alert: August 22, 2006

Bogus New Surcharge on Verizon DSL Bills.

With No Net Neutrality -- Tax the Internet Connection is the next problem.

(See Verizon Customer Letter Below)

Verizon has just screwed customers twice....adding a totally bogus surcharge on broadband bills which is disguised-direct revenue to Verizon. This is instead of lowering the bill through the removal of the Universal Service Fund fee, which was a 'pass-through' tax and not revenue to Verizon.

According to the letter sent to Verizon DSL customers, the phone company will remove the Universal Service Fund charge. Big Deal. The Universal Service Fund is not supposed to be applied to an 'interstate information service', i.e., the current definition of 'broadband' So, this charge is to be removed from bills, thus lowering the bill about 10% (the cost of the USF tax')

BUT: A Secret: this Universal Service Fund tax DID NOT GO TO VERIZON AS REVENUE. USF is a 'pass-through' to be paid by the customer to the USF Administration -- and not paid to the phone companies.

Bogus Charges: Like bogus charges on cell phones or applied to long distance service, Verizon decided to screw the DSL customer --- Verizon is adding a new "supplier surcharge" --- which is essentially a made up charge, sounding like a 'tax' but it is DIRECT, UNAUDITED REVENUE TO THE PHONE COMPANY with no government oversight.

This is what happens when you still have a monopoly offering wireline DSL services -- they can add new bogus surcharges because there is no real competition to lower the price. With competition for internet access, this could never occur as the competitors would be scared customers would have options.

And when you add bogus taxes and surcharges to the internet connection and the broadband pipe, aren't you illegally adding taxing to the Internet?

Why an added fee? There's yet another scam to all of this... When you have added fees as extra line items to the overall bill, then the 'advertised' price doesn't go up -- the companies ignore the 'taxes and surcharges' When you buy a local and long distance package, an additional 35% of fees are NOT included in the advertised price. And this practice of additional bogus fees has become common with long distance and wireless bills.

Bruce Kushnick, Teletruth

More about the problems with the Universal Service Fund http://www.newnetworks.com/usfanalysis.htm

More about the problems with phone bill taxes and surcharges http://www.newnetworks.com/phonebillinto.html

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Dear Valued Verizon Online Customer,

 

Effective August 14, 2006, Verizon Online will stop charging the FUSF

(Federal Universal Service Fund) recovery fee. We will stop being assessed

the fee by our DSL network suppliers. Therefore, we will no longer be

recovering this fee from our customers. The impact of the FUSF fee is as

follows: for customers of Verizon Online with service up to 768Kbps, the fee

eliminated is $1.25 a month; for customers of Verizon Online with service up

to 1.5 Mbps or 3Mbps, the fee eliminated is $2.83 a month (based on current

FUSF surcharge amounts). On your bill that includes charges for August 14,

2006 you will see either a partial FUSF Recovery Fee or no FUSF line item at

all, depending on your bill cycle.

 

Starting August 26, 2006, Verizon Online will begin charging a Supplier

Surcharge for all new DSL customers, existing customers with a DSL monthly

or bundle package, and existing DSL annual plan customers at the time their

current annual plan expires. This surcharge is not a government imposed fee

or a tax; however, it is intended to help offset costs we incur from our

network supplier in providing Verizon Online DSL service. The Supplier

Surcharge will initially be set at $1.20 a month for Verizon Online DSL

customers with service up to 768Kbps and $2.70 per month for customers with

DSL service at higher speeds.

 

On balance your total bill will remain about the same as it has been or

slightly lower. For more information, see the Announcement in the Help

section of Verizon Central, located at http://central.verizon.net

 

Verizon's Customer Online Information Doesn't Work ---

"We are currently in the process of enhancing our portal.

"Due to significant upgrades being implemented, certain features you may

attempt to access will be un-available while we test and tune system

performance.

"Sorry for the inconvenience, please check back later."