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story category Rate Hikes in Sheep's Clothing
New AT&T 'Local Connectivity Charge'
(old news - 09:03AM Wednesday Mar 29 2006)
tags: prices · business
We've long complained about them: the myriad of additional "fees" on your phone bill, some - like the regulatory recovery fee - pulled out of thin air and not even government sanctioned. The Associated Press takes a look at a new "local connectivity charge" of up to $4 a month AT&T is applying to customers outside their 13-state core service area.
It's hard for phone companies to raise prices in the hyper-competitive telecom business. But since phone bills are already a blur of surcharges and taxes, many companies find there's no need to risk angering customers with a rate hike. They can just tack on another fee with a confusing name."
AT&T is at least clear what the "fee" is for: "This fee will help AT&T recover increased connectivity costs associated with providing local service," a notice informs customers. "This fee is not a tax or charge required by the government." If we're concerned with honesty, why not include the "fee" in the above-the-line charge?

Related:
  1. Oh Look, Another Ridiculously Huge Wireless Data Bill
  2. Text-Messaging Rates Come Under Scrutiny
  3. AT&T Drops DSL Price, But Not Really
  4. Wednesday Evening Links
  5. Monday Morning Links
  6. Sprint XOHM Pricing Arrives
  7. Tuesday Evening Links
  8. It's Cable TV Rate Hike Season
Forums » Rate Hikes in Sheep's Clothing
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Post a:

tsu

join:2001-08-17
Wheeling, IL

Nothing to see here, move along.

Ah, deception; how sweet you are.

(who needs competition anyhow?)

N3OGH
It's Biden Vs. the Biscuit. Sarah's hot
Premium
join:2003-11-11
Philly burbs

Re: Nothing to see here, move along.

Not a fan of either, but at least last time Comcast gave me the shiv, they put a little flier in my bill and called it what it was, a rate hike.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Nothing to see here, move along.

A rate hike by any other name is...
a fee or tax
MrRuckus

join:2004-01-30
Portland, OR

VoIP

Why did I switch to VoIP again? Now I remember... Keep up the good work AT&T.

Karl Bode
News Guy
join:2000-03-02

Re: VoIP

VoIP has recently been adding these fees as well.

JoeyDee
Premium
join:2004-07-23
Las Vegas, NV
·Comcast


edit:
March 29th, @09:19AM

Re: VoIP

*Skype* is the answer....

With SkypeOut/SkypeIN and efax I have absolutely no use for AT&T. (I work from my home.)

I didn't cancel, didn't have a handset connected either for about 4 months. (I mean, you gotta have a landline,right?? No, Joe, you don't. ) Didn't have the need for the local telco once. bye, bye, SBC

Oh, my cell phone is my primary contact for customers. They're using my SkypeIn number more and more since I forward to the cell when I'm on the road.

Joe

Brianv
Low Level Functionary
Premium
join:2001-01-20
Keyser, WV
Packet8 is a straight shooter. $20 for service. No hidden fees and no problem with the service.
--
More power never hurt anything.

Karl Bode
News Guy
join:2000-03-02

Re: VoIP

I believe Packet8 added a "regulatory recovery fee" last spring, did they not?
dcurrey

join:2004-06-29

Re: VoIP

They also add a 911 fee of $1.99

Toymaster
Premium
join:2001-12-27
Flint, MI
clubs:
Looks like I will have to look in got VOIP and see, but what if your internet access is through the Telcos?
--
Join SETI Now!

ronpin
Imagine Reality

join:2002-12-06
Nirvana
·AT&T Southwest
·Charter Pipeline

Ok this is a "metro" number -- that magically rises from a ~$49 base rate -- to $72. Amazing (too bad my wife is afraid of change -- otherwise I'd dump 'em.
--
"Now is the time for all good men to come to the aid of their country" - and stop the NeoCons

TScheisskopf
World News Trust

join:2005-02-13
Belvidere, NJ
·Sprint Broadband D..

Re: VoIP

Same sort of thing here, although we get charged .75 for touchtone.

Whadda racket. No wonder the mafia has largely dissapeared: the smart ones went to work for the incumbents.

Oh, and that $4.00 "fee"? Sounds like some executive's baby needs a new pair of shoes. If I was an AT&T customer, I would make some noise to regulatory officials.

kenn10

join:2003-09-10
Kennesaw, GA
No wonder people switch to VOIP services. I thought $40/month with BellSouth was too much. No way would I pay $70/month for a residential phone line.

guitarzan
Premium
join:2004-05-04
Skytop, PA
All I can say is you're getting raped pretty good there friend.

MisterMarcus

join:2001-11-10
San Diego, CA
·RoadRunner Cable

Re: VoIP

said by guitarzan See Profile :

All I can say is you're getting raped pretty good there friend.
With absolutely no Vaseline.

lt_wentoncha
Red6

join:2002-05-12
000000
I don't even know what half those charges are.
wev567

join:2006-02-25
Pittsburgh, PA
Verizon offers that *plus* unlimited nationwide LD for about $20 less out the door here in PA. No VOIP B.S. Course, it took competition to make it happen
MrRuckus

join:2004-01-30
Portland, OR
Comcast on a side note is hilarious. See it everyday "Comcast digital voice as low as $39.99/month.

Do they even know their competitions pricing?
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

Re: VoIP

said by MrRuckus See Profile :

Comcast on a side note is hilarious. See it everyday "Comcast digital voice as low as $39.99/month.

Do they even know their competitions pricing?
And they have called me no less than 6 times in 8 days.


dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

Re: VoIP

said by moonpuppy See Profile :

said by MrRuckus See Profile :

Comcast on a side note is hilarious. See it everyday "Comcast digital voice as low as $39.99/month.

Do they even know their competitions pricing?
And they have called me no less than 6 times in 8 days.
That comcast price aint "Out the door pricing either"
--
You can never be too rich, too thin or have too much Bandwidth
poolek

join:2003-11-04
Austin, TX
·ViaTalk
·RoadRunner Cable
·AT&T Yahoo

They know their competition well. It's not VoIP providers - it's the incumbent telcos charging $70/mth for local access like shown above. Compared to that, $40/mth for unlimited local and LD with a decent selection of features is a great deal.

The majority of the users out there don't know or care about VoIP. The cable cos aren't worried about 'pure play' voip providers - they're just trying to steal customers from the telcos.
Techie714

join:2005-08-02
Anaheim, CA
·ViaTalk

said by MrRuckus See Profile :

Why did I switch to VoIP again? Now I remember... Keep up the good work AT&T.
Yep, you and me both left for the crappy insane fees they charge!

MattE
Obama '08
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Think that is bad?

Look at the recent "fees" and installation charges on a Bellsouth line. They have links to describe the fees, but half of them don't even work.



"Dual Party Relay", "FCC Authorized Charge for Network Access", "Line Connection Charge", WTF?
--
I have tried to see things from your point of view, but no matter how hard I try, or what I do, I just can't get my head that far up my ass.
chemaupr

join:2005-06-06
Alexandria, VA

in other words...

Our cost for local connections is approx $4 dollars. Since we want your flat rate as pure profit we are billing you for our cost separately.

Next, we will start billing you for our customer service. We will call it ... Customer Service recovery fee.
dcurrey

join:2004-06-29

Re: in other words...

Next fee is the Power Recovery Fee. This fee is used to recover the cost of providing power to the POTS line. Rates will very from month to month.

Surprised they haven't added it already.

rudnicke
Premium
join:2004-10-23
Rantoul, IL
clubs:

Why don't they just call this as it really is...

a lobbyist (sp?) fee.

They are just passing along the buck from the massive amounts of money their lobbyists spend on a monthly basis.

I'm glad I don't have SBC (AT&T), and I feel sorry for those that do.

ifarrell

join:2000-08-10
Willow Spring, NC

edit:
March 29th, @11:23AM

Re: Why don't they just call this as it really is...

How about an Excuses to Raise your Rates Fee
and a Loss of Income to Competition Fee
Luminaris

join:2005-12-01
Winchester, VA
Yeah, I dropped AT&T a little over a month ago and i'm glad I did
--
De Do Do Do, De Da Da Da, that's all I want to say to you ..

Doctor Dan
Weapons Of Masturbation
Premium
join:2001-10-20
Papiopolis
·inmotionhosting
·Verizon Online DSL

Disclosure

To its credit, AT&T is being forthright about its new charge. "This fee will help AT&T recover increased connectivity costs associated with providing local service," a notice to customers states. "This fee is not a tax or charge required by the government."
IMO, every surcharge on phone bills should be identified with the government statute than authorizes the collection of the fee, or the above disclaimer.

The new fee is being charged to 1.6 million subscribers who live outside the 13 states where AT&T owns most of the local phone network. Because it can't use its own phone lines to serve these customers, AT&T has to pay a monthly fee to other companies such as Verizon to use their local networks. Likewise, rivals such as MCI, now a unit of Verizon, pay a monthly fee to AT&T so they can sell local service in AT&T's 13-state region
The solution in that case is simple: don't subscribe to telephone service where the "carrier" really isn't the carrier.

- Dan
--
"That which does not kill us makes us stranger."
Jamuka

join:2005-06-06

Re: Disclosure

Federal Universal service charge ==> Spanish American War Tax of 1898!

Also, somewhere hidden among those fees and taxes (not split apart even) is the E-rate tax ==> Al Gore's great idea to wire all the schools in the country, which everyone knows has been corrupted to the point that millions of dollars of equipment is just sitting in warehouses. Real nice.

The sad thing is that every time they add a fee/tax they never, ever seem to go away even if its supposed to be temporary as noted above regarding the Spanish American War. Its 2006, hmmmmm, 108 year old tax!

Anyone else have any specifics about others?
dcurrey

join:2004-06-29

Re: Disclosure

Federal Universal service charge ==> Spanish American War Tax of 1898!
Isn't the Federal Excise Tax the Spanish American War Tax?

RadioDoc
Sortofadog
Premium,ExMod 2000-03
join:2000-05-11
Chicago, IL

Re: Disclosure

Yes it is, but don't bother him...he's on a roll.
--
Toolmaster of La Grange.

cableties
Premium
join:2005-01-27
Levittown, PA

Yeah. This kills me. I have a company that has to surcharge my clients for the calls I return to them so I can have their business!
So AT&T wants to have customers outside its range of competition, but then hits its customers there with an extra charge to use them.
Bendover.

Toadman
How do you like these Apples

join:2001-11-28
Medina, OH
·Armstrong Zoom In..

The new fee is being charged to 1.6 million subscribers who live outside the 13 states where AT&T owns most of the local phone network. Because it can't use its own phone lines to serve these customers, AT&T has to pay a monthly fee to other companies such as Verizon to use their local networks. Likewise, rivals such as MCI, now a unit of Verizon, pay a monthly fee to AT&T so they can sell local service in AT&T's 13-state region
The right hand washes the left, there should be no charge if they are recouping their costs through charging MCI back. Just another excuse to make $$$. I am so glad I dumped my Verizon land line for VOIP
moonpuppy

join:2000-08-21
Glen Burnie, MD

Looks like Google won't have to pay the network upgrade fee

Looks like we are going to be paying for it anyway.

OpenMike

@208.17.x.x

Comcast

At least Comcast lets you know they want more money straight up.
radarman

join:2005-06-01
Odenton, MD

Re: Comcast

Hey, that actually means quite a bit to me. I would much rather a business "call a spade a spade" than be dishonest about the bill. I'm still irritated, but at least I don't feel duped.

I'm still amazed by my $7/mo metered rate line costing over $14 a month due to fees. Shouldn't those fees be considered a cost of business, and included in the basic rate? (I keep a POTS line for 911, power outages and Vonage "funkiness")

A shame everyone is doing it now. I used to get irritated when the university I was attending raised fees - because they weren't covered by scholarships. (which was probably the point)

G_Poobah

join:2004-01-17
Schenectady, NY

It's in the megacorps nature to lie

As many of us have long known, it's not in a monopocorps best interest to have an educated customer. They engage in a psychological war against all people, in their quest to eliminate democracy.

They start by calling them 'consumers' instead of 'customers', because that makes it easier to justify taking their money. Next they work their hardest to ensure that people are NOT educated. An educated customer (as most BBR users are) is their worst nightmare. For 90% of the people here (except for the paid astroturfers), if you can change, you usually will. You are willing to adjust your habits based upon the actions of the monopocorp, but for the rest of the country, ESPECIALLY as the median age rises, that's not the case.

The solution is to do what they do in that *gasp* socialist Europe. When I purchase a sim card for my phone in germany, I get EXACTLY the valueofcard/costpermin minutes. No hidden 'connection charges' for each call. What I paid for is what I get. That's what the US needs to require, otherwise you can never compare Plan A to Plan B, cause you don't know the fees. Time to revamp the FCC and the Commerce committee, because they've obviously failed at what they are tasked to do.
--
Flabby? pastey-skinned? riddled with phlebitis? Then you've got a good Republican body! So compare your lives to mine, and then kill yourself.

AntiTreeHugger

@208.17.x.x

Re: It's in the megacorps nature to lie

(Paid astroturfer) ---> Someone whi disagrees with the Grand PoohBah.

WTF do you mean by astroturfer anyway? I see it in almost every post of yours.
Zoder

join:2002-04-16
Miami, FL

Re: It's in the megacorps nature to lie

From wikipedia: »en.wikipedia.org/wiki/Astroturfer

In American politics and advertising, the term astroturfing describes formal public relations projects which deliberately seek to engineer the impression of spontaneous, grassroots behavior. The goal is the appearance of independent public reaction to a politician, political group, product, service, event, or similar entities by centrally orchestrating the behavior of many diverse and geographically distributed individuals.

Astroturfing techniques usually consist of a few people discreetly posing as mass numbers of activists advocating a specific cause. Supporters or employees will manipulate the degree of interest through letters to the editor, e-mails, blog posts, crossposts, trackbacks, etc. They are instructed on what to say, how to say it, where to send it, and how to make it appear that their indignation, appreciation, joy, or hate is entirely spontaneous and independent; thus being "real" emotions and concerns rather than the product of an orchestrated campaign. Local newspapers are often victims of astroturfing, by publishing letters that are identical to letters other newspapers have received.

G_Poobah

join:2004-01-17
Schenectady, NY

There are 4-5 of them (they use about 20 different login names) on BBR. They are paid by comcast/Verizon/sbc/etc. Some of them admit they are paid employees, but most of them try to hide their heritage.

It's easy to catch them. I happened to get a copy of one of their scripts, and it has pre programmed 'responses' to any comments you may make about their masters. It's surprisingly accurate, but the handlers keep updating their scripts, so your mileage may vary.

»Re: Just for giggles...

I like to hear the ever classic 'Socialist' and 'Communist' labels they apply to me. So, the next time you catch a megacorp executive lying (it's not hard, just wait for them to start speaking), you can post your displeasure, and feel comfortable knowing how the astrotufers will respond from a well defined script.

--
Flabby? pastey-skinned? riddled with phlebitis? Then you've got a good Republican body! So compare your lives to mine, and then kill yourself.

lt_wentoncha
Red6

join:2002-05-12
000000

Re: It's in the megacorps nature to lie

said by G_Poobah See Profile :

There are 4-5 of them (they use about 20 different login names) on BBR. They are paid by comcast/Verizon/sbc/etc. Some of them admit they are paid employees, but most of them try to hide their heritage.

It's easy to catch them. I happened to get a copy of one of their scripts, and it has pre programmed 'responses' to any comments you may make about their masters. It's surprisingly accurate, but the handlers keep updating their scripts, so your mileage may vary.

»Re: Just for giggles...

I like to hear the ever classic 'Socialist' and 'Communist' labels they apply to me. So, the next time you catch a megacorp executive lying (it's not hard, just wait for them to start speaking), you can post your displeasure, and feel comfortable knowing how the astrotufers will respond from a well defined script.

Hooray! I've found a shill:

»Compared to Texas, Not Too Bad Here....
--
Arrogant People Suck.
AMW
FBI's Most Wanted
Interpol's MW
rmdir

join:2003-03-13
Chicago, IL

why?

>If we're concerned with honesty, why not include the "fee" in >the above-the-line charge?
Because they're not concerned about honesty?
FOODANDDRUG

join:2005-06-03
Riverside, CA


edit:
March 29th, @12:10PM

Compared to Texas, Not Too Bad Here....

After looking at the posters telephone bill from Texas, I can't believe that SBC still charges for touch-tone service and WOW...$4.95 for a non-published number? Here in California in the Pacific Bell/SBC/AT&T territory it's .28c, while at Verizon it's $1.50. To me, California isn't so bad after all, just very regulated when it comes to telephone service. That's good for consumers in this state.

Here's my recent bill from Pacific Bell/SBC/AT&T

Monthly Service - Mar 1 thru Mar 31
1-02 Universal Lifeline Measured Rate 2.85
Line Sharing Basis
1-03 Call Forwarding 3.23
1-04 Caller ID Complete Blocking .00
1-05 ULTS CR for FED Sub Line Charge 4.38-
1-06 Your Listing Is Not Published .28

Total Monthly Service 1.98

Local Usage
Local Calls
If you subscribe to a voicemail service and/or the Call Forwarding feature,
local usage charges apply when retrieving mailbox messages and/or each
time the Call Forwarding feature is activated.
Item
No. Description
7 Call(s) placed
7 Call Allowance ( 60 maximum allowance)
1-07 0 Call(s) at $.08 each .00
Total Local Usage .00

Surcharges and Other Fees
1-08 Federal Subscriber Line Charge 4.38
1-09 Rate Surcharge .08-
1-10 State Regulatory Fee .01

Total Surcharges and Other Fees 4.31

Government Fees and Taxes
1-11 CA High Cost Fund Surcharge - A: .01
1-12 CA High Cost Fund Surcharge - B: .07
1-13 California Teleconnect Fund Surcharge .00
1-14 Universal Lifeline Telephone Service Surcharge .04
1-15 CA Relay Service and Communications Devices Fund .01
1-16 9-1-1 Emergency System .02
1-17 Federal .20
1-18 Local .44

Total Government Fees and Taxes .79

Total Plans and Services 7.08


See 7 replies to this post
GhostDoggy

join:2005-05-11
Duluth, GA

"What are you going to do about it?"

"We're the phone company" -Lily Thomlin.

CHICAD
Premium
join:2006-03-11
Oak Park, IL

So....

what if a subscriber disagree with the current hikes he/she just received in the mail? Can someone just cancel services due to breach of contract?

FiL
Premium
join:2005-08-16
Silver Spring, MD

true^

but they already thought of that unfortunately. I think theres provisions (under the table REVISIONS) of their own laws of contract that state they can charge whatever they want, whenever they want, change it again by under whatever logic they subscribe to at the time, etc. etc...Plus, they'd eat you alive if you took it to court. All is lost...

...is what I wouldve thought a while back. Now I absorb the politricking machines garbage, regurtitate, and spit right back at 'em. Dont use any of the major telco's services at all, 'f' a cell phone, got pay phones everywhere, on every block in my 'hood. (the 2 phone stand types, with built in Thug-Protection, talk til your hearts content knowing "big black male" syndrome that guy opposite you "gives off" will drive away any an all telco evil do'ers)

Net, heh, you broadcast onto my property unprotected, your giving up your right to say "get the $#@%# off my line!"...TV, over the air, better quality programming, with built in "fuzz" and "snow" features to hide the hideos faces of up-start Model Reality shows...man, life is good!

westcoasteastcoast



Its a west coast-east coast thang...

This is an AT&T, Verizon thang...
Reciprocacy for "interconnect" fees on a PER MINUTE basis are what keeps a minor telco feud alive... since they can't go ahead and SURCHARGE on UNLIMTIED plans, everyone gets screwed! Good job! This should create a NEW WAVE of subscribers FLOODING to VOIP!

GOOD! I can't wait until this backfires on American Tax and Tarrif Company, and they lose MILLIONS! Vonage, you might want to hire a few more people!

i1me2ao

join:2001-03-03
TEXAS

bendover

we constantly are getting more and more bent over and rammed. hell i would explanation of what the charges are..
Forums » Rate Hikes in Sheep's Clothing


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