more on VERIZON CONCESSIONS TIP -- Helping Lifeline Customers?

[David Farber <dave () farber net>]

Begin forwarded message:

From: Bruce Kushnick <bruce () newnetworks com>
Date: December 3, 2004 4:16:11 AM EST
To: dave () farber net
Subject: Re: [IP] VERIZON CONCESSIONS TIP -- Helping Lifeline Customers?

> VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA BROADBAND LAW

Possibly. 1) To protect  affordable
> phone service for low-income households, the law requires incumbents to
> automatically notify residents who apply for state public assistance
> that they are eligible for an $8 discount on monthly phone bills and 
> up to
> $100 toward installation charges. The bill also allows these low income
> subscribers to buy services such as caller ID or call waiting.
> Previously, these customers weren't allowed to have these services, and
this
> restriction was considered a significant impediment to Lifeline
> enrollment.

The restriction of not getting Caller ID or Call Waiting is NOT the 
primary
reason customers
don't sign up for Lifeline in most states --- It is because these 
services,
which cost
pennies to offer by the telco are charged retail rates -- with no 
discount.
Also,
any time they use the phone, they get charged for the calls.

Our recent studies in New Jersey, NY and CA on Lifeline shows customers
paying
$15-$40 dollars a month, because even though some of the service is
discounted,
the overwhelming majority of customers have one or more service or make
calls,
including toll or local calls ---- all at non-discounted rates.

Then of course there are the other taxes that are also charged --- which
adds
another 10-30%.

So, the total charges is what stops them from getting service, not that 
some
services
aren't available.

Bruce Kushnick, Teletruth


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