The surcharge will initially be $1.20 a month for customers with service up to 768 kilobits per second and $2.70 per month for customers with faster DSL service, according to the company.
The fee comes as a government fee on DSL customers for the Universal Service Fund is being phased out. For customers with service up to 768 kpbs, the fee was $1.25 a month, and for customers with service of up to 3 Mbps, the fee was $2.83 a month, according to Verizon. Customers will no longer pay such charges effective Aug. 14, New York-based Verizon said.
The bold is mine. According to the article the company lobbied the FCC (Federal Communications Commision) to deregulate the DSL market, and remove the surcharge, to immediatelly after implement its own surcharge because
... [of] new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service. That service doesn't have the benefit of the revenue that was coming in from voice.
And people here complain of Telecom New Zealand? We haven't seen everything companies can do, yet...
UPDATE: The FFC is investigating why Verizon is applying this surcharge instead of simply increasing the base price of their services, if this is a cost-related charge, as the company claims. More information here.
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