August 22, 2006
New DSL Service Charges For Verizon Customers
Verizon has decided to charge their DSL high-speed Internet customers an extra US$1.20/mth (for access speeds up to 768 kbps (kilobits per second) or $2.70/m (for faster speeds). This will probably come as a surprise to customers who were expecting lower monthly bills based on a FCC decision last year to deregulate DSL (Digital Subscriber Line) service. [via CRM Buyer]
The old government fee for the USF (Universal Service Fund) is being phased out. So Verizon and no doubt other cable providers are taking advantage of it by imposing their own fee. Of course, they're claiming that this new fee has nothing to do with not having to pay the USF fee anymore. Great to know that they're thinking of us.
So what gives? Isn't their monthly service fee enough? Are they really not making any money? (Cable providers are.) Could this new fee be due to expectations that free VoIP over DSL phone calls will clog up their lines? Hmmm. Read between the lines in the CRM Buyer article, and that's what it seems like.
It'll be interesting to see who the next DSL provider is that applies a similar charge to customers' bills, and whether there will be a shift to cable services.
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