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August 22, 2006

Verizon Imposes Supplier Surcharge for DSL Customers

By Greg Galitzine, Group Editorial Director

Verizon is imposing a new “Supplier Surcharge” on its DSL high-speed Internet service just as federally mandated Universal Service Fund fees are expiring.
 
According to an Associated Press report, in a recent notice to customers the telecommunications company said it would begin imposing the surcharge for all new digital-subscriber line customers, and on current DSL customers with monthly plans. Customers on an annual plan will start paying when their plan expires.



 
Here’s an excerpt from the notice Verizon (News - Alert) sent to customers:
 
“Effective August 26, Verizon will charge a Supplier Surcharge for all DSL customers. The surcharge helps offset costs we incur from our network supplier. The Supplier Surcharge will be $1.20/month for 768Kbps service customers and $2.70/month for higher DSL speeds.
 
“Verizon Online will cease charging an FUSF recovery fee, beginning August 14, 2006. The impact of the elimination of the FUSF fee is for DSL customers up to 768Kbps, fee eliminated is $1.25.month; for DSL customers of up to 1.5Mbps and 3Mbps services, the fee eliminated is $2.83/month. On balance your total bill will remain about the same as it has been or slightly lower.”
 
A Verizon spokesperson cited “new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service.”
 
For more on the Universal Service Fund, click here.
 
Greg Galitzine is group editorial director for TMC’s IP Communications group of publications, which includes INTERNET TELEPHONY magazine, IMS Magazine, and SIP magazine, as well as TMCnet.com. To see more articles, please visit Greg Galitzine’s columnist page.
 


 







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