Verizon says forcing people off old plans to get FCC subsidy isn’t “upselling” (original) (raw)

50Mbps-and-below plans not eligible

Verizon's website says that FiOS Mix & Match customers can apply for the discount with their current plans, including Mix & Match plans at "any speed." But Verizon's letter told the FCC in a footnote that it isn't making the discount available to all Mix & Match FiOS plans.

"Verizon is not offering the EBB discount on 50/50Mbps or below Mix & Match plans, which are offered only on a limited basis where technical limitations preclude higher speed offerings," Verizon said.

FiOS customers on the 50Mbps-and-below plans would presumably get the discount once Verizon implements its billing system changes, although the footnote doesn't specify one way or another. We asked Verizon about that and whether it will expand eligibility to older mobile plans and to DSL. We'll update this article if we get answers.

Verizon says it went beyond FCC rules

Verizon pointed out that it went beyond the FCC's requirement by offering the discount on numerous plans:

Although the Commission's EBB rules require only that carriers offer the EBB discount on at least one broadband service, our original list of EBB-eligible services reflected a broad range of Verizon's current fixed and mobile broadband service offerings, including widely available FiOS fixed broadband plans (which we call "Mix & Match") currently in the market; all Mix & Match (current and legacy) unlimited mobile broadband plans; LTE Home and 5G Home fixed wireless plans; and standalone mobile hotspot plans.

Verizon urged the FCC to approve its pending acquisition of TracFone.

"Rather than evincing any intent to 'take advantage of low-income customers,' as Public Knowledge suggests in an effort to raise concerns about the proposed TracFone acquisition, these facts underscore Verizon's commitment to providing these customers the same range of robust broadband plans, both mobile and fixed, that it offers to all retail customers. And once the Commission approves Verizon's acquisition of TracFone, we look forward to demonstrating our commitment to bringing the best network and service experiences to value-conscious customers," Verizon said.

Charter’s forced opt-in

Charter requires customers to opt in to receiving Spectrum Internet service at full price after the subsidy runs out, according to a Protocol article last week. "Yes, customers opt in at the time of enrollment to continue receiving service once the program ends," a Charter spokesperson told Protocol. "Customers will receive notice 30 days before the program ends and can make a decision about keeping or terminating their service."

FCC rules require an opt-in rather than an opt-out in order to prevent bill shock when the subsidy runs out. "Spectrum, however, appears to be doing the inverse. Rather than giving potential applicants the option to continue their coverage at full price, it's requiring them to do so in order to receive the benefit at all," Protocol wrote.

Under the FCC rule, an ISP offering the discounts "shall clearly state that it will stop providing broadband service to the household at the conclusion of the EBB Program unless the household agrees to continue to receive broadband service. At least 30 days before the end of the EBB Program, the provider must also notify households of the upcoming increase to their monthly bills (or as soon as practicable if there is a scenario in which providers do not have 30 days' notice prior to the expiration of the program)."

Charter seems to be betting that requiring an opt-in at the beginning and giving customers a chance to opt out 30 days before the subsidy ends will be enough to satisfy the FCC. The FCC told protocol that ISPs "must collect that opt-in affirmation to continue providing the broadband service after the program ends, but they may do so at the time of EBB enrollment." As Protocol wrote, "it's unclear whether a forced opt-in complies with the FCC's rules."

Disclosure: The Advance/Newhouse Partnership, which owns 13 percent of Charter, is part of Advance Publications. Advance Publications owns Condé Nast, which owns Ars Technica.