[IP] more on VERIZON CONCESSIONS TIP -- Helping Lifeline Customers?
Begin forwarded message:
From: Bruce Kushnick <bruce@xxxxxxxxxxxxxxx>
Date: December 3, 2004 4:16:11 AM EST
To: dave@xxxxxxxxxx
Subject: Re: [IP] VERIZON CONCESSIONS TIP -- Helping Lifeline Customers?
VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA BROADBAND LAW
Possibly. 1) To protect affordable
phone service for low-income households, the law requires incumbents to
automatically notify residents who apply for state public assistance
that they are eligible for an $8 discount on monthly phone bills and
up to
$100 toward installation charges. The bill also allows these low income
subscribers to buy services such as caller ID or call waiting.
Previously, these customers weren't allowed to have these services, and
this
restriction was considered a significant impediment to Lifeline
enrollment.
The restriction of not getting Caller ID or Call Waiting is NOT the
primary
reason customers
don't sign up for Lifeline in most states --- It is because these
services,
which cost
pennies to offer by the telco are charged retail rates -- with no
discount.
Also,
any time they use the phone, they get charged for the calls.
Our recent studies in New Jersey, NY and CA on Lifeline shows customers
paying
$15-$40 dollars a month, because even though some of the service is
discounted,
the overwhelming majority of customers have one or more service or make
calls,
including toll or local calls ---- all at non-discounted rates.
Then of course there are the other taxes that are also charged --- which
adds
another 10-30%.
So, the total charges is what stops them from getting service, not that
some
services
aren't available.
Bruce Kushnick, Teletruth
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