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

[Dave Farber <dave () farber net>]

From: Sam Simon <sam () simon net>

Dave,

The issue can be looked at from another perspective -- the DSL rates are not
regulated.  Thus, the rationale for imposing "surcharges" for certain costs
is less convincing than when the rate structure is heavily regulated --
e.g., local phone services.  It is true that USF charges are being passed on
to them, they are not required to collect it in any way, and it isn't the
FCC that is forcing them to pay the USF. It is a cost being passed on to
them from their regulated company.

The real model for this type of problem is the long distance market, and ATT
happens to lead the pack.  While the Bell's are responding to the fact that
USF charges are now being passed on to them, and they are electing to recoup
them through a surcharge mechanism (not required by Government or anyone
else), ATT this past year (2003) added a $.99 a month "regulatory surcharge"
without any new fees or costs being passed down to them. As far as I can
tell, the $.99 will cover about what they pay their lawyers and Voices of
Choices for advocacy.

Sam Simon 

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