Price-Increases-As-Fees Start To Spread
from the they're-everywhere... dept
While extra unexplained "fees" are pretty common in the phone world, they're now moving over to the broadband side of the house. Broadband Reports has an opinion piece looking at the various fees found in your broadband bill, and how many of them really are (as you suspected) simply a way to raise the price without making an official price increase. For example, they look at SBC's "regulatory recovery fee" which just so happens to change based on the tier of service you're signed up to use. Of course, what SBC pays the government is fixed per circuit, so if they have to charge a fee, it should be constant. Plenty of other fees are clearly just a sneaky way of hiding cost increases, so they can advertise a lower price. As we noted recently, it's only a matter of time until such pricing structures are found in other businesses. Most business simply include the costs of doing business in the price they offer customers. Breaking out extra pieces and not telling the customer until after they've signed up is simply a way of tricking customers. How would you feel if the pizza you bought, in addition to the sales tax you pay, came with a property tax assessment fee, a electricity bill adjustment fee and a new dough delivery fee? These are all expenses that the pizza place has, but you expect them to be included in the advertised price, not tacked on at the end, only after you've agreed to buy the pie.