[IP] Birds of a Feather ...
Begin forwarded message:
From: Randall <rvh40@xxxxxxxxxxxxx>
Date: August 27, 2006 1:51:01 AM EDT
To: dave@xxxxxxxxxx, dewayne@xxxxxxxxxxxxx, Law & Policy of Computer
Communications <CYBERIA-L@xxxxxxxxxxxxxxxx>
Subject: Birds of a Feather ...
http://htdaw.blogsource.com/post.mhtml?post_id=376103
BellSouth drops Internet fee after FCC threat
By Jeremy PelofskyFri Aug 25, 6:43 PM ET
BellSouth Corp. (NYSE:BLS - news), the No. 3 U.S. local telephone
company, on Friday said it will immediately drop a $2.97 monthly fee
for high-speed Internet service after U.S. communications regulators
threatened to investigate the charge.
The U.S. Federal Communications Commission had been poised to send a
letter of inquiry to BellSouth asking the carrier to explain the new
fee, which replaces a surcharge for a government subsidy program, FCC
officials said.
Most customers would see the change on their bills within a week, but
it could take up to six weeks, BellSouth said. It added that
customers charged the fee dating back to August 16 would receive a
credit.
However, the FCC's enforcement bureau on Friday did send a letter to
Verizon Communications (NYSE:VZ - news), the No. 2 U.S. telephone
company, for information on its own new charge instituted to replace
the fee for the government program.
"The bureau is investigating whether Verizon's practices are
consistent with the obligations set forth in the commission's Truth-
in-Billing rules," said the letter, which requires a response within
20 days.
The FCC could seek enforcement action, including fines, against the
company if any regulations have been violated.
As of August 14, providers of high-speed Internet service, known as
broadband, are no longer required to contribute part of that revenue
to the Universal Service Fund (USF), which subsidizes communications
services to schools, lower-income households and rural areas.
The carriers had passed that USF cost onto their customers, but an
FCC decision last year phased out the USF fee for the telephone
companies' high-speed Internet service.
Still, BellSouth continued charging its nearly 3.3 million high-speed
Internet customers $2.97, and Verizon said it would impose a new
monthly surcharge of $1.20 or $2.70, beginning August 26, which it
said was to help subsidize connection costs.
Verizon had charged broadband customers a monthly fee of $1.25 or
$2.83 to cover its USF contribution, depending on connection speeds.
"When the FCC phases out a fee and a major broadband provider rushes
in to replace it with a new company surcharge, consumers get burned,"
said FCC Commissioner Michael Copps, a Democrat. "Pulling a fast one
like this won't fool consumers and I don't think it will fool the
commission either."
Verizon spokesman Eric Rabe said the company received the FCC letter
and would respond. He also said that Verizon informed customers about
the fee, the reasons for it and posted a notice on its Web site.
A spokeswoman for the FCC declined to comment.
AT&T has agreed to buy BellSouth and needs the FCC to approve the
transaction. AT&T Inc. (NYSE:T - news), the largest U.S. telephone
company, did not impose a replacement fee and the FCC did not send
the company an inquiry letter.
http://news.yahoo.com/s/nm/20060825/tc_nm/telecoms_fcc_dsl_dc_5
My Original Writing blog: http://itgotworse.blogsource.com
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