Re: calling card payphone surcharges


From: jleipol <jleipol@ibm.net>
Subject: Re: calling card payphone surcharges
Date: Mon, 11 May 1998 10:40:14 -0400

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eric <eric_marcus@compuserve.com> asked:
> I have just been told that the FCC  allows an extra 30 cent charge applied
> to  800 # calls made from  certain privately owned public phone booths.
> Right or wrong (again!)?

Eric: You struck a raw nerve, and will probably now get more information
than you really wanted, but in my mind, "personal finance" includes
anything that can add to or detract from our personal financial bottom
line. So here goes:

As of October 7, 1997, the FCC adopted rules that required long distance
providers to compensate payphone service providers (PSPs) 28.4 cents for
each call placed from payphones. Your long distance provider then passes
that charge along to you, +/- a few cents (mine charges $0.35!).

The intended purpose is to allow greater profits to PSPs and thus allow
for greater numbers of companies to be involved as PSPs, thus giving the
general public better access to payphones because there will
theoretically be more of them.

For more information, you can call the FCC (from any payphone, if you
want) at (888)225-5322. They have a three page blurb they can fax you.
They will not accept complaints by phone, but they will give you an
address for mailing informal complaints.

My .02 worth? The FCC rule stinks. On one hand, you get hit for $.??
every time you dial a toll-free number from a pay phone using your
calling card. On the other hand, the business where I work has a
toll-free number for customers to call in on, sometimes to place orders,
sometimes just to get information. We have no way to tell if that call
is coming in from a pay phone or not. Last month, we were charged $43.05
for some 123 calls that came in from pay phones on our toll-free number.
We have no way to recover that money except to raise prices to all
cutomers across the board. Granted, it's not a huge sum, but over a
ten-year period it equals $5,166  of needless expense that could have
been spent on something better. Ditto for any other business using
toll-free lines to make it easier for customers to access them. Someone
must ultimately pay the expenses, and it will be the customers, not the
shareholders.

Another tax (er, I mean, revenue enhancement) that you may be
unknowingly paying is the FCC-mandated "Universal Service Fund
Assessment", in effect since January 1998 (info also available by fax, 5
pages, "news report no. CC 97-24"). Anyone who has more than one phone
line (personal or business) must be filthy rich and therefore must pay a
little extra on their monthly phone bill. If you examine your phone
bills (local and long-distance) you may or may not find it, depending on
how it may be buried (or encoded, as they say). Where I work, it is a %
of long-distance billing. If this month is average, over ten years this
little jewel of legislation by the FCC will cost us $14,079.60 (and we
are not a very big company). The next time you see photo-op pictures of
AlGore wiring some "disadvantaged" or rural school for the internet so
that the local middle-schoolers can download nude pictures, I hope you
get a nice warm feeling, cause I helped pay for that, bless their little
hearts.

Thank you, federal government.

John Leipold



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