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Posts with tag universal service fund

Verizon and BellSouth shamefully retract USF "replacement" fees

In case you haven't been following the exciting world of telecom regulation lately (and really, why would you?), the FCC recently mandated that DSL providers no longer have to pay into the Universal Service Fund that's meant to subsidize rural and low-income phone service (and that may induce all kinds of pork-barrel spending, but that's a whole other story right there). Anyway, the elimination of this surcharge was supposed to be passed along to consumers in the form of lower monthly bills -- and many companies, including AT&T and Qwest, did just that -- but the sneaky suits over at Verizon and BellSouth decided to keep charging customers almost the exact same fee, though for different reasons. Verizon claimed that it had "developed new operating costs" in the previous year, justifying this so-called "supplier surcharge," while BellSouth began calling theirs a "regulatory cost recovery fee" -- even though the USF contribution regulation no longer existed. Both companies offered up some confusing doublespeak as to why these new, identical fees came into play at the exact same time that the USF fee was withdrawn; ultimately, however, pressure from consumers, the media, and the FCC forced them to retract the charges from customers' bills and issue credits where applicable. So in conclusion, we're really starting to see an encouraging trend here: first Dell implements a massive battery recall following tons of negative publicity, then Foxconn stops picking on those "slanderous" journalists in the wake of a massive public outcry, and now the telcos have been forced to mend their greedy ways after everyone got wise to their shenanigans. Therefore, that old adage actually seems to be true: a lot of the time, it's the squeaky wheel that really does get the grease.

Read- Verizon's fee
Read- BellSouth's fee
Read- BellSouth caves
Read- Verizon caves

FCC ruling could mean higher VoIP bills

A new plan by the FCC to keep the Universal Service Fund stocked in anticipation of the coming August exemption for DSL providers will likely lead to higher VoIP bills for consumers. The agency has ruled that companies like Vonage and SunRocket who offer Internet telephony services must now pay 7% of their revenue into the fund -- used to subsidize rural and low-income phone service -- which has been traditionally been stocked by taxing POTS and DSL providers at a rate of 10.9%. However, since DSL providers have been let off the hook for this program, the FCC needed to make up for the shortfall, so the agency both instituted the VoIP component and raised cellular carriers' contribution from 3% to 4%. Since providers tend to pass new costs on to the consumer, we can probably expect to see higher VoIP bills in the near future, but luckily the recent repeal of that Spanish-American war-era excise tax should mostly balance things out on the cellphone side of things.



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