[IP] more on Time to move back to cable -- Verizon to add DSL fees

[Dave Farber <dave@farber.net>]

Delivered-To: dfarber+@ux13.sp.cs.cmu.edu
Date: Wed, 14 Apr 2004 10:21:36 -0400
From: "Steven M. Bellovin" <smb@research.att.com>
Subject: Re: [IP] more on Time to move back to cable -- Verizon to add DSL fees
To: dave@farber.net

In message <6.0.3.0.2.20040414095258.034170f8@ux13.sp.cs.cmu.edu>, Dave Farber
writes:

>
>Dave,
>
>    Are these "fees" really imposed by the federal government, or are they
>just something that the RBOCs just made up to increase their bottom
>line?  I've heard rumors that such "fees" are not in fact real fees, but
>just a way to make more money.  If they are bogus, how can they get away
>with them?  Could they really be trying to rid themselves of DSL customers
>in their normal short-sighted manner?

The answer, as always, is "yes and no".  There are fees, but the amount
of the increases does not necessarily correspond to the actual fee
charged by the government.  My take from an article in yesterday's Wall
Street Journal is that the main benefit to the companies is that they
can advertise a lower price than they're actually charging.  Thus,
BellSouth's DSL service will be advertised at $29.95 -- but they'll
charge $2.97 more.  Of that $2.97, 85% will go to the government.  They
claim that the balance is used to cover their costs for compliance.

Hmm -- I wonder if we'll soon see even lower advertised prices -- with
extra "fees" added on for corporate income tax, property tax, franchise
fees for antenna towers on municipal property, etc.


		--Steve Bellovin, http://www.research.att.com/~smb

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