by Matthew Lasar Aug 30 2006 - 11:00pm Universal Service Fund
Two members of the Federal Communications Commission have publicly acknowledged Verizon and BellSouth's move to drop a controversial DSL charge.
"I am pleased that both Verizon and BellSouth have eliminated fees recently imposed on their DSL customers," FCC Chair Kevin Martin said in a statement released yesterday. "Consumers should receive the benefits of the Commission's action last summer to remove regulations imposed on DSL service."
FCC Commissioner Deborah Taylor Tate issued a similar press release.
The Washington Post reported last Friday that the FCC had sent letters to the two phone service providers asking why they had added the $1.20 or $2.70 charges, given the agency's recent decision to release their high speed Internet divisions from having to contribute to the Universal Service Fund (USF). The USF subsidizes basic phone service for the poor.
Since the FCC inquiry, both BellSouth and Verizon have announced that they will remove the new fee.
The FCC's decision to stop requiring firms to collect a portion of their DSL revenue for the financially troubled USF was not unanimously supported at the commission. At at June 21st FCC hearing, Democrat Michael Copps urged the FCC to reconsider the move. Copps questioned whether recently imposed VoIP and wireless taxes will "offset the funds lost by DSL’s nonparticipation."
"Surely it would be an intolerable result to end up with the fund having less revenue, not more, for the foreseeable future," Copps said.