Tuesday, August 22, 2006

Verizon Fees

Verizon Communications has decided to pocket most of the savings from the cancellation of a government surcharge on digital subscriber lines, despite calls from consumer groups to pass on the savings on to users.

Verizon, one of the biggest U.S. telecoms companies, used to charge DSL customers a monthly fee of $1.25 or $2.83, depending on connection speeds, for a government fund to help bring service to lower-income and rural areas.

The government stopped charging that fee from August 14, but Verizon will instead impose a new monthly surcharge of $1.20 or $2.70, beginning August 26, which it said was to help subsidize connection costs.