Verizon Caves, Drops Internet Surcharge

NEW YORK — Backing down to pressure from the Federal Communications Commission, Verizon has said that it will drop its planned high-speed Internet surcharge.

The FCC, which had announced a planned phase-out of the Universal Service Fund (USF) fee scheduled to take effect Aug. 14, sent a letter of inquiry to Verizon earlier this week asking the company to explain its proposal to charge consumers between $1.20 and $2.70 per month.

The original USF was a fee levied by phone and Internet providers on behalf of the federal government to subsidize communications services to lower income households, schools and rural areas.

News of the agency’s interest in the fees that would take effect after the USF phase-out prompted BellSouth to quickly discontinue its plans. Verizon made its decision to drop the new fee after it received the FCC’s letter of inquiry.

According to a Verizon company statement, the decision was a result of customer feedback.

"We have listened to our customers, and are eliminating the charge," a company spokesman said.

Gene Kimmelman of the Consumers Union said that government pressure likely had more to do with Verizon’s decision than consumer input.

“They got caught red-handed in a blatant consumer rip-off,” Kimmelman said. “Only under the pressure of regulators cracking down on them did they back off from this unwarranted charge."

FCC Chairman Kevin Martin said that he was pleased that both BellSouth and Verizon had seen fit to drop the fees, adding that deployment of affordable broadband remains his top priority.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Ofcom Releases Transparency Reporting Guidelines

Ofcom, the U.K. media regulator, has made public its official guidance detailing how online service providers — including adult sites — will be required to publish annual transparency reports on their efforts to protect children from online harms.

New AV Rules Take Effect for Ireland-Based Sites

Ireland’s Online Safety Code came into force Monday, including a provision requiring adult sites headquartered in Ireland to implement age assurance measures beyond self-declaration.

XBIZ Amsterdam Calls on New Startups for 'Spotlight' Program

XBIZ is pleased to announce that its new “Startup Spotlight” programming will make its European premiere at XBIZ Amsterdam 2025, set to take place Sept. 2-5 at the Jakarta Hotel Amsterdam.

Texas Resumes AV Lawsuit Against Aylo Following SCOTUS Decision

A district court judge in Texas has unfrozen the state’s $1.6 million lawsuit against Aylo for allegedly failing to comply with age verification requirements, Bloomberg Law is reporting.

JuicyAds Wins Trademark Infringement Case Against Fraudulent Domain

JuicyAds has won its World Intellectual Property Organization (WIPO) case against a website using a similar domain to impersonate the company's site and defraud customers.

Anissa Kate, Jordan Starr Top AEBN for Q2 of 2025

AEBN has published its top-selling stars for the second quarter of 2025, with Anissa Kate landing atop the leaderboard for straight theaters and Jordan Starr heading up the gay rankings.

AEBN Reveals Eva Maxim as Top Trans Star for Q2 of 2025

AEBN has published its top trans stars list for the second quarter of 2025, with Eva Maxim landing atop the leaderboard.

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

Show More