RED HERRING | Verizon Backs Down on DSL Fees

RED HERRING | Verizon Backs Down on DSL Fees: "Under pressure from the U.S. Federal Communications Commission and consumer groups, Verizon Communications has removed a controversial surcharge from its DSL customers� bills.

Verizon, along with BellSouth, had tacked on the fee earlier this month after the U.S. government dropped the universal service fund recovery fee, which Verizon had passed along to customers.

FCC Chairman Kevin Martin was reported to be outraged over the extra fee that Verizon and BellSouth said they would continue to impose on customers and threatened to send a letter of inquiry to both carriers on Friday.

BellSouth agreed to drop the fee Friday, and on Wednesday, after receiving the missive from the FCC, Verizon has now agreed to drop the fee as well.

Last summer, FCC regulators altered the rules so carriers no longer had to pay into the universal service fund, which helps subsidize phone service in rural parts of the United States, as well as service for low-income customers. "