Test Your Connection
Speed Now

Verizon and BellSouth Eliminate New DSL Surcharge

After FCC inquiries, Verizon and BellSouth have agreed to drop its new service fee and credit money back to customers. This fee was imposed after the federal government stopped collecting fees as part of the Universal Service Fund (USF). With this, many Verizon and BellSouth customers who were expecting savings in their monthly bills were surprised by the new surcharge.

The Universal Service Fund is a U.S. government program which provides subsidies for telephone service in areas that might otherwise have difficulties obtaining economical telephone service, particularly low-income areas and rural areas as well as schools and libraries. This fee is collected by the FCC.

In mid-August, the FCC announced that it will now classify DSL service as an information service and therefore DSL service is no longer required to pay into the USF.

With this, customers were expecting to see a $1 to $3 savings in their monthly bills. However, after this announcement, both Verizon and BellSouth added surcharges to offset other fees: Verizon added fees to help offset “Naked DSL” costs and BellSouth used the extra money to cover leftover regulatory charges.

Verizon and BellSouth Response

Verizon and BellSouth were quick to respond to its customers concerns. After receving a letter of inquiry from the FCC, both companies immediately dropped the additional surcharge and began crediting its customers for the additional charge.

Digg!