Fergie's Tech Blog

BellSouth Drops High-Speed Internet Fee After FCC Threat

Jeremy Pelofsky writes for Reuters:

BellSouth Corp., the No. 3 U.S. local telephone company, on Friday said it will immediately drop a $2.97 monthly fee for high-speed Internet service after U.S. communications regulators threatened to investigate the charge.

The U.S. Federal Communications Commission had been poised to send a letter of inquiry to BellSouth asking the carrier to explain the new fee, which replaces a surcharge for a government subsidy program, FCC officials said.

Most customers would see the change on their bills within a week, but it could take up to six weeks, BellSouth said. It added that customers charged the fee dating back to August 16 would receive a credit.

However, the FCC's enforcement bureau on Friday did send a letter to Verizon Communications, the No. 2 U.S. telephone company, for information on its own new charge instituted to replace the fee for the government program.

posted by Fergie @ 8/25/2006 04:31:00 PM