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CenturyLink Tacks On New Nonsensical Fee
New $1 'Internet Cost Recovery Fee'

One of the benefits of having little to no competition in your markets is you can jack up prices and add all the little obnoxious fees you'd like with no repercussions, since most of your customers have no other options. One of the benefits of lobbying and enjoying regulatory capture in uncompetitive markets is you can engage in this kind of behavior repeatedly and be confident that United States regulators simply won't give a damn.

The latest in a long stream of examples of this comes courtesy of CenturyLink, who just got done raising rates for DSL users and is now tacking a completely nonsensical new fee on to customer broadband bills. Former Qwest users in our CenturyLink forum say that they're being notified of a new $1 "Internet Cost Recovery Fee" for the first time this month.

Like with other junk fees of this kind (AT&T's AT&T's Administrative Mobility Fee being just the latest), this is a way to raise rates (further) without increasing the advertised price by tacking on below-the-line fees. It's absolutely predatory and a form of false advertising, yet in the thirteen years I've covered this industry I've never once seen a regulator (state or federal), PSC, Attorney General or watchdog stand up to such behavior. Here's CenturyLink's silly explanation for the fee:

quote:
Internet cost recovery is a new monthly recurring charge which is applied to all consumer and business HSI lines in service. It helps cover the costs associated with building and maintaining the internet network.
Customers were probably under the foolish notion that CenturyLink's already-very-high prices more than paid for "building and maintaining the internet network," particularly given how badly the company lags at building and maintaining said network to provide next-generation speeds. While $1 may not seem like much, you just have to multiply that times CenturyLink's 5.9 million broadband customers each and every month to see how lucrative these kinds of junk fees are.

Given that regulators refuse to do their job and crack down on such fees, it's rather surprising CenuryLink doesn't take this further. "While they're at it, maybe CenturyLink should add a charge to help cover the cost of advertising, paying their employees, and cleaning the company bathrooms," recommends an annoyed user.
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nt4long
@charter.com

nt4long

Anon

almsot ready to fire centurydink

A local CLEC is fibering up my town. Can't wait to make the call and tell Centurylink to get bent.
moodydan
join:2013-01-03
Gate City, VA

moodydan

Member

Re: almsot ready to fire centurydink

said by nt4long :

A local CLEC is fibering up my town. Can't wait to make the call and tell Centurylink to get bent.

A local company launched fiber where I live as well. I dumped Centurylink and I'm getting quite a bit better speeds now as well. Loving the new fiber internet.
Kearnstd
Space Elf
Premium Member
join:2002-01-22
Mullica Hill, NJ

Kearnstd

Premium Member

its a bullshit fee. yet PUCs and AGs do nothing.

quote:
Internet cost recovery is a new monthly recurring charge which is applied to all consumer and business HSI lines in service. It helps cover the costs associated with building and maintaining the internet network.
Isnt this called billing the customer while providing a service?

Nothing like hiding price hikes behind fees so they can keep advertising lower rates.

Telecom industry is dirtier than the Mafia.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: its a bullshit fee. yet PUCs and AGs do nothing.

said by Kearnstd:

quote:
Internet cost recovery is a new monthly recurring charge which is applied to all consumer and business HSI lines in service. It helps cover the costs associated with building and maintaining the internet network.
Isnt this called billing the customer while providing a service?

Nothing like hiding price hikes behind fees so they can keep advertising lower rates.

Of course they do nothing. They don't have the authority to regulate price of service or fees on NON-VOICE systems. The only one with any authority would be the FTC for false advertising. And they would probably lose in court as long as the service providers include the fees in their contracts and billing notices.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

2 edits

tshirt

Premium Member

Re: its a bullshit fee. yet PUCs and AGs do nothing.

said by FFH5:

The only one with any authority would be the FTC for false advertising.

I think most state AG's would be interested too.
FTC does not have an exclusive on illegal marketing investigation.
In fact I'd file a complaint here, but unfortunately I can only get Frontier here (one of the few telcos on earth that suck even worse then Centurylink)
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband to Kearnstd

Member

to Kearnstd
This is done because its allowed to be done. There is a national ISP that does it and was mentioned on here before about doing it but they still do it. they're excuse is that they're charged the fee by AT&T and VZ, etc.

Some ISPs do not charge this fee and they should all be mentioned on here. Including those that have access to the Next-Gen networks from the ILECs and MSOs.

TwiztedZero
Nine Zero Burp Nine Six
Premium Member
join:2011-03-31
Toronto, ON

TwiztedZero

Premium Member

On Notice

Justice Department Might be watching huh? Oh yeah lessee where that goes.

jfleni
@bhn.net

jfleni

Anon

Re: On Notice

Watching?? They're watching their navels, nothing more!

Camelot One
MVM
join:2001-11-21
Bloomington, IN

Camelot One

MVM

I don't understand this one

When AT&T, Verizon, Comcast, or Time Warner add these types of below the line fees, it is so they can still advertise a competitive price for the service, while collecting more.

But Century Link doesn't compete on price. Their pricing is already far higher than competitors in the same market, while offering speeds far below others. So there is no reason to make this a below the line fee. They could jack the advertised price up $5, and still be no less competitive than they are now, and without getting the attention of any government agencies.

jchambers28
Premium Member
join:2007-05-12
Peculiar, MO

jchambers28

Premium Member

Re: I don't understand this one

they can't compete on anything here. Cox is here offering 150 MBPS for 100. 68 for 50 Mbps.

Camelot One
MVM
join:2001-11-21
Bloomington, IN

Camelot One

MVM

Re: I don't understand this one

Around here they are pitching 3000/768 dsl for $52 a month, when paired with local only pots for $36+ taxes and fees. It is flat out insane.
dagg
join:2001-03-25
Galt, CA

dagg to Camelot One

Member

to Camelot One
i believe the technical term for this behavior is called "being stupid"

StuartMW
Premium Member
join:2000-08-06

2 edits

StuartMW

Premium Member

Just noticed...

Just noticed the $0.99 "Internet Cost Recovery Fee" on my bill this morning.

I just figured it out. They just don't want to call it "NSA data tracking fee"
ArizonaSteve
join:2004-01-31
Apache Junction, AZ

ArizonaSteve

Member

Re: Just noticed...

A $0.99 fee wouldn't be too bad but my bill went up by $9.66! Besides the bill going up from $60 to $65.00, there is a Related Monthly Charges Total of $0.99 and a Service Additions & Changes Total of $3.67 that were added to the original $60 bill to make a new total of $69.66! There isn't any other option for service available around here though!
wvcaver
Premium Member
join:2005-04-17
Millersburg, OH

1 edit

wvcaver

Premium Member

WELL THEN !

I do expect the bottle necks and evening slow downs to be corrected !! If not then as a customer I will be forced to add a internet slowdown recovery fee !

linicx
Caveat Emptor
Premium Member
join:2002-12-03
United State

linicx

Premium Member

I am waiting

I signed up for 9 added years @ fixed rate. CL speed and price vary wildly from state to state and county to county. The max DSL i can get is 10/1. It's $40. If I want 10/2 from cable its $60 plus the cost of cable and modem and $2 transmission fee. I live in rural America 50 miles from AT&T or Comcast. We are the screwed pooch so to speak.
zevus
join:2010-11-29
Chandler, TX

zevus

Member

Re: I am waiting

You shouldn't have to pay that much for 10/1 unless you're also leasing the modem. I was getting the 10/1 service for about $25/mo after fees.

You also have to call sales and complain about the crappy service and say you're going to cancel, then they'll offer you $5 or sometimes $10 off a month for the rest of the year (or if you still have free months, sometimes they'll give you a free month.. they can do this three times a year)

linicx
Caveat Emptor
Premium Member
join:2002-12-03
United State

linicx

Premium Member

Re: I am waiting

Yes. We have regular chats. At least once a month. I'm really unhappy with the internet/ faux POTS bundle. Somewhere along the line these folks didn't think we would notice that the ever popular touch tone phone was built for POTS and not DSL over copper because it didn't exist back then. I am only leasing the modem because I can't buy one. Every 6 months or so they change it anyway. It would be pointless.

I got my bill today. They tried to hike it from $72 to $88.00. We settled for $73.xx - which includes $13.xx state, local, county, USFS & below the line. Next month it is going up $2. Which is a tad high anyway. What I think is, regardless of the cost, I'm deaf-blind and I should have a reliable phone that works 24/7/365 just like the POTS phone I used 50 years ago. There is no worn out copper between me and the office because it was replaced 5 years ago. Every time the electricity or Internet fails so does the phone. POTS didn't have the problem because it had a batter backup in the office. My local office is open 30 minutes M-F. It's a 90 mile drive to pay the bill.

I had a smart phone once. The taxes for city and state were $25.
I now have a TracFone. . It works better than the faux/POTS.
chgo_man99
join:2010-01-01
Sunnyvale, CA

chgo_man99

Member

New ticketmaster/stubhub cunner

If anyone here (I hope) gets off the computer and go out to attend games or concerts, know what they have to go through to buy concert or game tickets. A cheap $12 to a soccer game will quickly become $22 thanks to "service" and "delivery fees". I may understand why they charge service fees but they already charge those same fees to ticket sellers or brokers. Delivery fees, convenience charge fees, print at home fees, etc are nonsense and purely to rip off buyers because they have no alternative.
ISurfTooMuch
join:2007-04-23
Tuscaloosa, AL

ISurfTooMuch

Member

Re: New ticketmaster/stubhub cunner

Yep, been there, done that. And the kicker is you have no real choice. In most cases, the only way to avoid these fees is to go to the box office to buy tickets...if you can find it, and if it's a reasonable distance away.

It's also a lazy cop-out by most venues, which could easily set up their own sites to sell tickets online.
chgo_man99
join:2010-01-01
Sunnyvale, CA

chgo_man99

Member

Re: New ticketmaster/stubhub cunner

And even better kicker is that even some of those venues add their own convenience fees that are below or on par with that of ticketmaster. Most people have no choice to go to a venue directly to buy a ticket.

Another kicker is $2.50 to print at home or wait for free by mail. But it is just safer to have a print option, at least if you loose or forget the tickets you can reprint or if you want to sell its easier to trade.

There is also $7 optional insurance fee. Most won't need it, but if you happen to have an event across the country, its better to have it in case if your flight gets delayed or cancelled and you miss the event.
travelguy
join:1999-09-03
Bismarck, ND
Asus RT-AC68
Ubiquiti NSM5

travelguy to ISurfTooMuch

Member

to ISurfTooMuch
said by ISurfTooMuch:

the only way to avoid these fees is to go to the box office to buy tickets.

My experience has been that the box offices with a Ticketmaster contract charge similar fees, so there is no way to avoid them.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25 to chgo_man99

Member

to chgo_man99
Those fees you typically see on those are being charged by the company doing the selling and it is THEIR fee and revenue for doing the selling for the venues you speak of.

In addition, those fees are known upfront before you make the purchase and it is a one off purchase. It is not a monthly obligation you are contracted in suddenly getting a price hike with below the lines fees.

Apples to oranges there my friend.
chgo_man99
join:2010-01-01
Sunnyvale, CA

chgo_man99

Member

Re: New ticketmaster/stubhub cunner

said by Skippy25:

Those fees you typically see on those are being charged by the company doing the selling and it is THEIR fee and revenue for doing the selling for the venues you speak of.

In addition, those fees are known upfront before you make the purchase and it is a one off purchase. It is not a monthly obligation you are contracted in suddenly getting a price hike with below the lines fees.

Apples to oranges there my friend.

Yes but as I explained they already get revenue and profit from service fees for doing the selling for the venues as you say. What I state is those delivery, print-at-home, convenience, etc charges are bullshit. Those are below the line fees. Also you won't see some fees until you get to final confirmation page. Ticketmaster is the worst offender with those extra fees.
Kearnstd
Space Elf
Premium Member
join:2002-01-22
Mullica Hill, NJ

Kearnstd to chgo_man99

Premium Member

to chgo_man99
This is why lots of people protested the fact that the government allowed Ticket Master to buy out Live Nation. It has effectively left many markets with zero competition in events ticketing.
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

bunch of scumbags fee

call it what it is, a price hike fee put in place by scumbags!
capital investments to build a PROPER FIBER TO THE CUSTOMER network is supposed to happen through loans and bond/stock issuances.. not raising prices to the customer. if you look at it another way.. the high prices these combined telcos raked in over the course of the last decade should have stockpiled enough profits to build out the fiber optics routed to major central offices... these telcos in the west and southwest squandered this income and did very little to offer broadband services to it's customers.... I'd almost go as far as to say they did some MCI style ebezzlement & scheme to defraud since they have nothing to show for their network squeezing that copper dry to obsolescence and poor stewardship from 1996 - to current date.

Verizon spent 24 billion + dollars, AT&T, maybe up to 4 billion dollars, CentruyTel? less than 100 million? (2001 - 2013)

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

Transmaster

Member

The Real secret name: The NSA information Cost recovery Fee

The Title says it all.

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

dvd536

Premium Member

turn a dollar into 250

unhappy? heres your get out of jail free card.

Fox McCloud
Crazy like a fox.
join:2006-07-23

Fox McCloud

Member

Centurylink has gone down the tubes.

Welcome to the new Centurylink....where support doesn't respond to e-mails anymore and they're all but inactive on the DSLR forums, as well.

Call in? Better accept a new modem that has a monthly fee before you can proceed any further with your tech support.
jnvancl
Premium Member
join:2005-10-31
Papillion, NE

jnvancl

Premium Member

99 cent internet recovery fee

I called Centurylink to ask what the new fee was and they advised it is a tax they have to collect for the city and it is passed on the the customers, so good luck with the new company, they have to have a franchise to operate in the city too.

jmiller
@comcastbusiness.net

jmiller

Anon

Re: 99 cent internet recovery fee

said by jnvancl:

I called Centurylink to ask what the new fee was and they advised it is a tax they have to collect for the city and it is passed on the the customers, so good luck with the new company, they have to have a franchise to operate in the city too.

If you're talking about the $0.99 "Internet Cost Recovery Fee", this is a total lie. CL also told me on multiple accounts that this is a FCC/government tax. From the CL website:

"Cost recovery fees are not taxes or government-required charges for use."

Simply put, this is a way to make another buck without changing the base price. This is a fact. I have called them multiple times and pressed them on this. They have confirmed it's not a tax, it's not a "required fee", but rather a fee CL created to raise the price.
nutcr0cker
join:2003-04-02
Chandler, AZ

nutcr0cker

Member

Under no circumstance should a company be regulated

As we all know regulations are bad for the free market. Century link should have tacked a $10 fee to dsl lines. If you donot like it you always have the option of not having internet. Corporations are people and hope they sue you for defaming a reputable corporation
old_wiz_60
join:2005-06-03
Bedford, MA

old_wiz_60

Member

The cable/internet companies...

charge whatever they want. They own enough government regulators to protect themselves from government oversight.

And with the new head of the FCC a supposedly former cable lobbyist, you can expect the FCC to let the cable/telcos run amok. Bribery continues in the government.

We can't pay the kind of bribes the cable/telcos can pay. so we lose.
old_wiz_60

old_wiz_60

Member

New Name...

It should be Washington, District of Corruption..

aboutthat00
@centurytel.net

aboutthat00

Anon

Fee Clarification...

Just an FYI, that fee is just an extension of what legacy customers were already being charged...not trying to justify it, but it's simply being applied to ALL customers, instead of only some. Part of the conversion process.

jmiller
@qwest.net

jmiller

Anon

Re: Fee Clarification...

said by aboutthat00 :

Just an FYI, that fee is just an extension of what legacy customers were already being charged...not trying to justify it, but it's simply being applied to ALL customers, instead of only some. Part of the conversion process.

That's fine. Then they should:

-raise the base rate like it should be
-stop lying to customers by telling them it's a tax or FCC fee
-not add it as another line item with some bogus name and pretend like the price didn't go up.
panteev
join:2004-05-08

panteev

Member

Bad CenturyLink!

Just noticed this in my bill. Called them, poor girls don't even have the official response handy, one of them tried to blame the state, another said, I am not kidding: "this is to make sure you have Internet".

Here's one way to give them feedback: »www.facebook.com/CenturyLink
jmiller
join:2013-06-25
Minneapolis, MN

jmiller

Member

Re: Bad CenturyLink!

said by panteev:

Just noticed this in my bill. Called them, poor girls don't even have the official response handy, one of them tried to blame the state, another said, I am not kidding: "this is to make sure you have Internet".

Here's one way to give them feedback: »www.facebook.com/CenturyLink

LOL! Obviously their tactic is to hope the caller is clueless and believes it.

Good suggestion about Facebook.