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Hiding Hikes in a 'Fee'
Users angered by new BellSouth fee
(old news - 06:51PM Tuesday Mar 16 2004)
tags: prices · business · Op/Ed
Users in our BellSouth forum began receiving letters this week informing them of a new $2.97 "regulatory cost recovery fee". Oddly, the fee isn't actually imposed by the FCC or government, and yet isn't being included in the price of BellSouth DSL listed on promotional materials.

Inflated fees and service charges that pad your monthly bill are all too common among cable and phone providers. You're likely paying eight dollars a month for services like call waiting or caller ID when they cost less than a penny to provide. Skirting the law to avoid being accused of "cramming", providers increasingly look toward fees to disguise rate increases.

BellSouth is clear to point out in the letter that this latest fee isn't being imposed by a government agency. According to BellSouth, the fee is being added to consumer DSL bills to help the company recoup costs created by "regulatory obligations". The obligations "include recovery of the Federal Universal Service Charge." This is added to other Universal Service Fund fees we've discussed in the past.

If the fees themselves aren't debatable, the honesty with which these fees are presented certainly are. Instead of BellSouth informing customers their monthly DSL bill will be increased to $52.92, they've continued advertising the service at $49.95, pretending that the price hike never even existed.

The costs of doing business are being listed "below the line", presented as fees, and ignored in marketing materials to disguise rate hikes from consumers, and make price comparisons intentionally more difficult.

The same tactic is being used in the wireless sector. Cingular has come under fire for recently adding their own version of the fee. According to Cingular, their fee helps "defray Cingular's costs associated with payment of fees and compliance with various initiatives imposed by the government." Keep in mind wireless carriers were allowed to project whatever costs they wanted on to consumers for local number portability with little FCC oversight to confirm these cost-predictions were accurate.

In an effort to simplify broadband price-comparisons for our users, our price-comparisons will include these fees in the price totals from now on, as well as listing providers that omit USF charges or "regulatory cost recovery" fees.

Related:
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  2. Time Warner Cable GETS MORE EXTREME!!!
  3. Real Consumer Group Takes Aim At Fake Ones
  4. Verizon's New, Ridiculous Wireless Data Prices
  5. Verizon's New Wireless Pricing Is An Insult
  6. Per-Byte Broadband Billing Is Neither Necessary Nor Inevitable
  7. Mandatory Smartphone Data Plans Seem Hypocritical
  8. Verizon, Comcast Still Fighting Over Silly VOD 'Channel' Counts
Forums » Hiding Hikes in a 'Fee'
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page: 1 · 2
CrazyJr

join:2003-02-27
Oakland, CA

Dollars signs

Another way for these providers to make money. You'd think they already are making money with so many people jumping to DSL from Comcrap.
kingofdsl

join:2002-12-11
Afton, OK

Re: Dollars signs

Bravo Karl and BroadbandReports for comparing the "Real" Prices with the added hidden "Fees".

In the meantime everyone E-mail and call the Public Service Commissions, State Attorney Generals and the FCC to get the deceptive, False and Misleading advertising stopped.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
SBC is overstating the USF it looks like, as well.

Matt
Gone playing Dragon Age Origins
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Don't forget.....

With Bellsouth, the $49.99 is also not in addition to the 5 dollar fee added for "Universal Network Access" or whatever it was called for your DSL to connect to the actual internet.

So the price for a DSL line with them is actually $54.95/month, now PLUS this new $2.97 fee.

In my area, Time Warner offers their cable access, without the hidden fees, for $45.95. And it's twice the speed down and 128Kbps faster up.

Time Warner maintains their network very well in my area, so at least here, Bellsouth needs to get on the ball if they want to remain competitive in the broadband wars.

graysonf
Premium,MVM
join:1999-07-16
Fort Lauderdale, FL

Re: Don't forget.....

Wrong. The backbone access charge is broken out in the bill but is included in the total $49.95.

Matt
Gone playing Dragon Age Origins
Premium
join:2003-07-20
Jamestown, NC

Re: Don't forget.....

Well, when I had BSFA a few years ago, my total, line itemed charge was $54.95. 49.95 + that 5 dollar fee.

Perhaps you should re-check your bill.
TercelChick

join:2002-08-13

Re: Don't forget.....

Depends upon your state. FL and GA I know don't have it.

jtudor
Xm 60's On 6 Freak
Premium,MVM
join:2002-12-07
Morganton, NC

said by Matt See Profile:
Perhaps you should re-check your bill.
I do not have this $5.00 fee in NC, Never have.
--
Best of luck

"Do, or Do not, there is no try!" Yoda

Lurch77
Stop looking at me.
Premium
join:2001-11-22
+44.88-87.89

Dirty

Wife handles the bills, so I did not see this one. Maybe it is time to switch. $52+ is getting be too much. But then again, there are not many choices for someone that does not want to get cable.

ObdH
Premium
join:2003-06-11

Re: Dirty

$50+ is too much imo, if you're getting bullcrap 1.5-2mb down and 128k up thats FUKCIN rediculous, im paying 39 for 3/256 cable and as soon as it increases to $50+ im outta here, substandard service and crappy connections make dsl worth the extra few $$ IMO
--
STFU T00L
averagedude

join:2002-01-30
Mesa, AZ
·Cox HSI

Used Car Sales

This reminds me of used car sales people. Haggle, haggle, and that price does not include tax, lic, spare tire, floor mats . . . . . ARRRGGHHH!

I thought we (as a society) were past this type of bate and switch. Next we will find out that grocery stores will be adding fee's to the real price - Oh wait, they all ready do that by only showing the discounted card cost and not real cost with out card.

I think cell phone bills are the worst in "mis"representing the true per month cost. Get you in with low monthy ad's, but wait until you get first bill - Ka-ching $$$
slyphoxj

join:2002-06-23
Brook Park, OH
·AT&T Midwest


1 edit

Dirty grocery tactics

I also particularly hate it when food makers sneak in "new and improved" packaging that's a few ounces less than before without lowering the price. Danon and now Giant Eagle(1) have done this with yogurt (used to be 8 oz., now they're 6 oz.). That Pierre's(2) (and others too) half-gallon is now a few ounces shy of a half-gallon. Same goes for orange juice (watch out for that new plastic "carafe" jug!)

(1) Giant Eagle is a regional grocery store chain HQ'ed in Pittsburgh. They have stored in PA, OH, maybe WV?

(2) In case you haven't heard of Pierre's, it's a local brand popular in NE Ohio.

EDIT: Changed title to "Dirty grocery tactics" to more accurately refect what I'm talking about.

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

Re: Dirty grocery tactics

NOBODY makes a pound can of coffee with a pound of coffee in it anymore.
remember 5 pound bags of sugar/flour? theyre all 4 pounds now(a sneaky way to increase price 20%)
remember 10 pound bags of ice? (now theyre 7pounds(price increase of 30%)
and the biggest ripoff: Potato chips! we pay up to 4 dollars for something that is 80% air!!!!!!!!
--
You can never be too rich, too thin or have too much Bandwidth
rid0617

join:2003-07-20
Greer, SC

Re: Dirty grocery tactics

Another good example, find a true 2x4 now a days, they don't exist

Iknowenuff

join:2001-06-28
Riverside, CA

I don't see anyone going back to dial-up.....

The point is we will pay it cause we 'NEED' it. I don't forsee any of you going back to dial-up any time soon. Braodband providers know this. As long as the prices for cable and dsl stay close, we will pay for one or the other. Unless both are not available in your area the choice is a matter of preference. But weather its cable or dsl we will pay. We may complain, but we 'WILL' pay....

koitsu
Premium
join:2002-07-16
Mountain View, CA

BellSouth isn't the only one.

This fee just recently (4-5 billing cycles ago?) showed up on Speakeasy's bills as well. I always wondered what it was, especially since they tossed up an Email stating how our USF fees were "being decreased," then this mystery charge appears to make up for the lost portion...
--
Making life hard for others since 1977.

Snakeoil
Taxes are Armed robbery.
Premium
join:2000-08-05
Mentor, OH

My biggest beef with Bellsouth or telephone co.

They feed you a line of crap that they can't provide dsl service unless you have phone service.
Why can't they add a "line" fee to the DSL service and allow use to drop the phone service. That way we can use VOIP if we wanted to.

Bellsouth should owe up that they are increasing rates, and be honest up front, instead of being sneeky like certain politicains.

Besides didn't Bellsouth just get fnished laying off a bunch of people, and now they want to increase the rates?
--
"He told me that if you can't tell something fom right or wrong, ask yourself if you mind people seeing what your doing. If you'd rather keep it a secret, then maybe it aint so right after all"From: Hunter page 389. Author: James Byron Huggins
TercelChick

join:2002-08-13

Re: My biggest beef with Bellsouth or telephone co

said by Snakeoil See Profile:
Besides didn't Bellsouth just get fnished laying off a bunch of people, and now they want to increase the rates?

No, they're not finished laying off yet. About 700 just got canned this week.
ParanoiaInc

join:2002-08-28
Tucker, GA

Re: My biggest beef with Bellsouth or telephone co

A lot of them are in networking, too. So, as the Customer Rules! come into play, you as the customer are no-count and worthless.
cuindy

join:2000-07-21
Aurora, OH

Re: My biggest beef with Bellsouth or telephone co.

said by Snakeoil See Profile:
They feed you a line of crap that they can't provide dsl service unless you have phone service.
Why can't they add a "line" fee to the DSL service and allow use to drop the phone service. That way we can use VOIP if we wanted to.

Bellsouth should owe up that they are increasing rates, and be honest up front, instead of being sneeky like certain politicains.

Besides didn't Bellsouth just get fnished laying off a bunch of people, and now they want to increase the rates?

The worst Part is that "DSL" line sharing rules are only on
ADSL lines. I was told by an ISP Britsys.net @ »www.britsys.com/
you can get SDSL on a line and then you can drop the voice and the SDSL stay hooked up. The only problem is it cost more, 512K/512K is $72.
Dydion

join:2001-03-07
Baton Rouge, LA

Re: My biggest beef with Bellsouth or telephone co

quote:
said by Snakeoil :Besides didn't Bellsouth just get fnished laying off a bunch of people, and now they want to increase the rates?

No, they're not finished laying off yet. About 700 just got canned this week.
So they're really jacking the rates to pay for the layoffs?
8744675

join:2000-10-10
Decatur, GA

Earthlink has done the same thing

Earthlink added a similar charge to my bill about 6 months ago without any notice that I recall. I searched their website and couldn't find anything to explain what the charge was for. It's also disguised as a 'recovery fee'.

The odd thing is that ISP's are not regulated so what money do they have to recover? In addition, I'm paying extra to Earthlink for DSL over my Bellsouth phone line, and paying Bellsouth all kinds of charges on the same line.

Are we being double billed for 2 services on the same wire?

Just on my voice line with BellSouth, the add-on charges and taxes are:

Federal Universal Service Charge .60
FCC Local Number Portability Line Charge .35
FCC Charge for Network Access 6.50
Federal Excise .94
GA - State/Local Tax 1.67
Emergency 911 Charge 1.35
Telecommunications Relay Service Fund .15

TOTAL 11.56

That's 1/3 of my total phone bill!

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI

moot

I could care less what they call it. I don't care that there is tax in my bill and fees, etc. All I care about is what I write on the check each month.

If they think otherwise, they are quite delusional.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16

PhoenixDown
-- Wants FIOS
Premium
join:2003-06-08
Fresh Meadows, NY
clubs:

Re: moot

I am with you on that. We all want the best bang for the buck but I hate the deception involved. Why should I be paying 10% of my cell bill in 'fees'. These 'fees' should be the same across all providers which they aren't and that hurts us - the consumer
--
Help DSLR Claim 5th in SETI!!

USABigBusinessSucks

@comcast.n

Big Business SUCKS!!!!

Typical of American big business. The fat @$$ scum bags at the top of these companies aren't happy with their $40 million a year... they want more, more, more, more, more!!

graysonf
Premium,MVM
join:1999-07-16
Fort Lauderdale, FL

Off scale on the...

Lamometer |........./|

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
·Internet Nebraska

Gray Area

I don't like SBC charging more, and dismissing the hidden rate increase as a fee that is worded as if the government is responsible. As for blatant rate hikes, if you think you are being charged too much then cancel service with your ISP. I am proud to live in a country where companies can charge whatever they want for a product or service. If the majority of customers think prices are too high, the company will lose money and people cancel their service and they will have to lower their prices. If I ever open my own business, the last thing I want is the government dictating what I can charge for my products. Long live free enterprise.
--
I will reduce the government by dissolving the senate & house of representatives. With my new powers, I will protect America against terror and make this country great. Trust me.
fullback

join:2002-01-24
japan

Re: Gray Area

What is this 'pride' stuff? What exactly did you do to earn this pride? Was it your extraordinary planning to select your place of birth and your parents?

These companies have a protected franchise for the area they are in. There are usually no competitors allowed to offer the same service in the area. The Bells were built from a government mandated monopoly to collect money from consumers having no choice.

Sheesh. You go ahead and try to start a business that competes with your local phone or cable company. Let us know how it goes, will you?

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
·Internet Nebraska

Re: Gray Area

said by fullback See Profile:
What exactly did you do to earn this pride?
You mean, what did the US do to earn my pride. My answer is that it has provided many people the opportunity to realize their dreams through capitalism.
quote:
Was it your extraordinary planning to select your place of birth and your parents?
Ok that didn't make any sense.

quote:
The Bells were built from a government mandated monopoly to collect money from consumers having no choice.
The government never mandated the monopoly, they only sanctioned it. Second, the company wasn't built by the government, it was a thriving business like any other. Look it up.

quote:
You go ahead and try to start a business that competes with your local phone or cable company. Let us know how it goes, will you?

The wireless companies and the satellite companies, which compete with the bells and the cable companies, are doing just fine.
--
I will reduce the government by dissolving the senate & house of representatives. With my new powers, I will protect America against terror and make this country great. Trust me.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest

Re: Gray Area

said by ArchAngel21x See Profile:
The wireless companies and the satellite companies, which compete with the bells and the cable companies, are doing just fine.
Well... sorta. The Wireless companies are being bought up by the Bells. And DTV was just bought by FOX....
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
looser

join:2001-02-04
La Mesa, CA
HAHAHA.... your funny. A link for ATT, about ATT, no that wouldnt be a bit biased now would it.

Azzurok

@12.153.x.x


1 edit
The wireless companies are not free enterprises they are big business that already existed and are working with the major phone companies. For Instance Cingular wireless = Bellsouth. You're just too misinformaed to see past your own ignorance.

You know, some politicians didn't originate corrupted... they became that way because they didn't go into the situations they put themselves in with both eyes open. Open your eyes, and stop walking blindly.

Capitalism has the potential to be a great form of governemt... its the people on top who are too greedy that keep it from gaining any justification. Money isn't the route of all evil... its the love of it. and some people just love it too much, cuz they have too much of it and it's still never enough for them. think about that.

-Peace

Azzurok

@12.153.x.x

thumbs down from:
ArchAngel21x See Profile

And how are you going to compare Phone/Cable/Wireless companies??

Totally different businesses, thats like comparing Car/Train/Airline companies... goober.
netscape 6

join:2002-03-07
Constantine, MI
Please explain how I switch to a competitor in a monopoly situation? What? Can't??? Guess then since I'm stuck with what ever they gouge me with. So there better be some regulation to prevent from taking advantage of this hostage situation.

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
·Internet Nebraska

Re: Gray Area

said by netscape 6 See Profile:
Please explain how I switch to a competitor in a monopoly situation? What? Can't??? Guess then since I'm stuck with what ever they gouge me with. So there better be some regulation to prevent from taking advantage of this hostage situation.

Hostage situation? No one is forcing you to take their service. If you think it cost too much, then you go without. If you continue to pay, then you must not think the price is really that bad.
--
I will reduce the government by dissolving the senate & house of representatives. With my new powers, I will protect America against terror and make this country great. Trust me.
netscape 6

join:2002-03-07
Constantine, MI

Re: Gray Area

said by ArchAngel21x See Profile:

Hostage situation? No one is forcing you to take their service. If you think it cost too much, then you go without. If you continue to pay, then you must not think the price is really that bad.

The goverment granted them a monopoly. Normal market conditions to do not exist for a monopoly. They have no compition. It is a hostage situation. Since they have been granted special power by the goverment. It's reasonable to expect certain restirctions, such as not abusing their sole power to set prices (No compition = being able to price it what ever rate they want). I live in country where people are free to air their grievences, including those against certain abusive extortionary companies.

If they were in a normal market situation I'd say sure chrage what ever they want. They'll just go out of business if they charge too much. However in a monoply it's either their blackmail or nothing.

ArchAngel21x
MacFan Pro
Premium
join:2001-10-28
Lincoln, NE
·Internet Nebraska

Re: Gray Area

But even in a monopoly situation, if enough people cancel their service you will see the price go down. Too many people think they can't made a difference on their own without government intervention, and that pisses me off.
--
I will reduce the government by dissolving the senate & house of representatives. With my new powers, I will protect America against terror and make this country great. Trust me.
netscape 6

join:2002-03-07
Constantine, MI

Re: Gray Area

said by ArchAngel21x See Profile:
Too many people think they can't made a difference on their own without government intervention, and that pisses me off.

I think that is some common ground. While we mlght disagree on whether the goverment should be brought in, I too wish people would realize how much power they collectively have.

Safron

join:2001-07-25
Gray, GA
clubs:

I don't mind companies charging what they want.
However, in many areas, there is no alternative to BellSouth.
You either use them or nothing.
Since they have a monopoly in many areas, they had better damned well justify every charge with a good reason.
Dydion

join:2001-03-07
Baton Rouge, LA

A rose by any other name...

I would much rather see a blatant rate hike than be jerked around with the pathetic "fee" rationalization. I don't care if they just need more whores for the board of directors; that's not my concern. I don't like being lied to.

It is totally right and fair that BBR will report the full rates that includes the fees and b*llsh*t that pad out the monthly bill.

What I would like to know is: How are these "fee"s dreamed up, decided on, then passed down? Who is responsible?

FLECOM
Bay Networks Freak
Premium
join:2003-03-03
Miami, FL

BS = BellSouth... convienient eh?

see sig... end of story
--
BellSouth sucks

nixen
Rockin' the Boxen
Premium
join:2002-10-04
Alexandria, VA

Welcome To My World

Been this way with SpeakEasy for as long as I've been a customer. It's a rather common bitch-thread in the SpeakEasy forum.

-tom

DaneJasper
Sonic.Net
Premium,VIP
join:2001-08-20
Santa Rosa, CA
clubs:

So when will BBR listings include fees?

Subject says it all - Karl, when will BroadBandReports listings begin to include all of the fees?

-Dane

pcscdma
Chocobo Chocobo Random Battle
Premium
join:2004-01-14
Winterset, IA
clubs:

Re: So when will BBR listings include fees?

Tool point credit card processing fee
Tool point processing and administration fee
September 11 credit card security fee
Hardware and bandwidth usage fee

You could make millions!
--
The smarter computers get, the more faith I put into Newton's 3rd law.

SigEp1995

join:2000-11-17
Alumni Hall

This only applies to the DSL bill

and not the phone bill, correct? I think paying close to $30 just for a friggin dial-tone with these people is ridiculous enough! Damn, I was just thinking about switching to DSL lite with them, too. Oh well. Guess I'll have to learn to live without broadband again since I'm thinking about ditching Earthstink.
--
| Sigma Phi Epsilon | You like doggies? |

elias
Premium,VIP
join:2000-07-24
Miami, FL
clubs:

Why Even Get BellSouth DSL?

I don't get why people still get DSL from BellSouth.

First, they use PPPoE, have dynamic IPs, and don't let you host anything.

Plus, they charge taxes, and now this new fee.

For about $49.95, you can get DSL from one of their resellers, and get the exact opposite.

You'll get a bridged connection, without any of that PPPoE garbage. You'll get a static IP. Finally, you'll get a TOS/AUP that lets you host anything you'd like.

And the price is exactly $49.95, since you aren't taxed on it.

-- Elias
--
NetCoalition | DSLi Forum | Crunching the Midnight Oil
ackman

join:2000-10-04
Acworth, GA

Where are the India savings?

The scammers at Accenture running Bellsouth's IT group, along with the CEO, announced recently their bold plans to save the company $275 million over 5 years by outsourcing to India. OK, fine, but shouldn't those savings be routed back into the business and their customers, rather than just into the executive coffers? How much of that potential savings was demanded as a bonus payable to the Accenture scammers? If tech workers in America are to lose our jobs at the hands of greedy a**hole companies like Accenture in favor of Indian outsourcing, then at the very least we should be getting lower prices from that shift. After all, we unemployed white collar tech people aren't going to be able to afford DSL at over $50/month. So, go ahead Bellsouth and Accenture, continue to screw us even more, we'll just take it happily.

footballdude
Premium
join:2002-08-13
Imperial, MO

Re: Where are the India savings?

said by ackman See Profile:
The scammers at Accenture running Bellsouth's IT group, along with the CEO, announced recently their bold plans to save the company $275 million over 5 years by outsourcing to India. OK, fine, but shouldn't those savings be routed back into the business and their customers, rather than just into the executive coffers?
I don't know any specifics about BS but, generally, the increased profits should find their way into increased dividends for stockholders. Any business that issues stock has the stockholders as its first priority.

ctceo
Premium
join:2001-04-26
South Bend, IN
clubs:

Who... Wha...

It's time ALL BellSouth customers revolt on this hidden crap, Subtract $2.97 from every bill you recieve and contact the FTC, and your state Attourney General about Fraudulent business practice(s)

...

See 7 replies to this post
Forums » Hiding Hikes in a 'Fee'page: 1 · 2


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