Verizon's at it again, like clockwork. It was almost exactly a year ago that Verizon offered it's so-called broadband "deal" [1] which, in actuality, simply cut service in half for roughly half the price. Here it is, a year later, and Verizon is once again misleading its customers with deceptive business practices that obfuscate the fact that they are about to start charging their customers roughly 10% more for their service. Due to changing interpretations of national telecommunications regulations, Verizon has replaced their public service obligation to help support the Universal Service Fund (basically the funding that helps pay for services to the rural, underserved, etc.) with a direct subsidy to the corporation itself. In other words, take money from the poor and pay it directly to Verizon to boost their profit margin.

Here's how it works (thanks to Bruce Kushnick for passing this along):

Read more... [2]

Teletruth Alert: August 22, 2006 Bogus New Surcharge on Verizon DSL Bills.

With No Net Neutrality -- Tax the Internet Connection is the next problem.

(See Verizon Customer Letter Below)

Verizon has just screwed customers twice....adding a totally bogus surcharge on broadband bills which is disguised-direct revenue to Verizon. This is instead of lowering the bill through the removal of the Universal Service Fund fee.

According to the letter sent to Verizon DSL customers, the phone company will remove the Universal Service Fund charge. Big Deal. The Universal Service Fund is not supposed to be applied to an 'interstate information service', i.e., the current definition of 'broadband' So, this charge is to be removed from bills, thus lowering the bill about 10% (the cost of the USF tax')

BUT: A Secret: this Universal Service Fund tax DID NOT GO TO VERIZON AS REVENUE. USF is a 'pass-through' to be paid by the customer to the USF Administration -- and not paid to the phone companies.

Bogus Charges: Like bogus charges on cell phones or applied to long distance service, Verizon decided to screw the DSL customer --- Verizon is adding a new "supplier surcharge" --- which is essentially a made up charge, sounding like a 'tax' but it is DIRECT, UNAUDITED REVENUE TO THE PHONE COMPANY with no government oversight.

This is what happens when you still have a monopoly offering wireline DSL services -- they can add new bogus surcharges because there is no real competition to lower the price.

And when you add bogus taxes and surcharges to the internet connection and the broadband pipe, aren't you illegally adding taxing to the Internet?

Bruce Kushnick, Teletruth

More about the problems with the Universal Service Fund:

http://www.newnetworks.com/usfanalysis.htm [3]

More about the problems with phone bill taxes and surcharges:

http://www.newnetworks.com/phonebillinto.html [4]

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Dear Valued Verizon Online Customer,

Effective August 14, 2006, Verizon Online will stop charging the FUSF (Federal Universal Service Fund) recovery fee. We will stop being assessed the fee by our DSL network suppliers. Therefore, we will no longer be recovering this fee from our customers. The impact of the FUSF fee is as follows: for customers of Verizon Online with service up to 768Kbps, the fee eliminated is $1.25 a month; for customers of Verizon Online with service up to 1.5 Mbps or 3Mbps, the fee eliminated is $2.83 a month (based on current FUSF surcharge amounts). On your bill that includes charges for August 14, 2006 you will see either a partial FUSF Recovery Fee or no FUSF line item at all, depending on your bill cycle.

Starting August 26, 2006, Verizon Online will begin charging a Supplier Surcharge for all new DSL customers, existing customers with a DSL monthly or bundle package, and existing DSL annual plan customers at the time their current annual plan expires. This surcharge is not a government imposed fee or a tax; however, it is intended to help offset costs we incur from our network supplier in providing Verizon Online DSL service. The Supplier Surcharge will initially be set at $1.20 a month for Verizon Online DSL customers with service up to 768Kbps and $2.70 per month for customers with DSL service at higher speeds.

On balance your total bill will remain about the same as it has been or slightly lower. For more information, see the Announcement in the Help section of Verizon Central, located at http://central.verizon.net

***

Verizon's Customer Online Information Doesn't Work ---

"We are currently in the process of enhancing our portal.

"Due to significant upgrades being implemented, certain features you may attempt to access will be un-available while we test and tune system performance."

"Sorry for the inconvenience, please check back later."