Verizon Forces Users Onto Pricier Plans To Get $50-Per-Month Government Subsidy (arstechnica.com) 31
An anonymous reader quotes a report from Ars Technica: Verizon and other Internet service providers are preventing some low-income customers from getting new $50-per-month government subsidies unless they switch to different plans that are sometimes more expensive. Over 825 ISPs nationwide are selling plans eligible for the new subsidies that the US government made available to people who have low incomes or who lost income during the pandemic. Verizon stands out among big ISPs in its use of the subsidy to "upsell" customers to pricier plans, according to a story yesterday by Washington Post tech columnist Geoffrey Fowler.
"Soon after the EBB [Emergency broadband Benefit program] launched, I started hearing from Washington Post readers about their frustrations signing up with certain ISPs," he wrote. "Verizon elicited the most ire from readers." Instead of letting people enroll online, Verizon requires them to call a phone number to sign up and then "tells some customers the EBB can't be used on 'old' data plans, so they'll have to switch," the Post article said. Verizon is limiting the plans available on both mobile and home Internet service. The EBB is temporary, lasting until the $3.2 billion in program funding runs out or six months after the Department of Health and Human Services declares an end to the pandemic. Verizon customers who have to switch to a more expensive plan in order to get the $50 monthly discount would have to pay the higher rate after the subsidy expires.
"At the end of the program, you will either continue on your plan at the price without the EBB discount or you will end your Internet-related services with Verizon," a company FAQ says. "We will give you an opportunity to decide this at the beginning of your enrollment into the EBB program and again before the end of the program. If you do not affirmatively choose to keep your Internet-related services, the FCC requires that we disconnect those services at the end of the EBB program." Verizon defended its implementation of the subsidy program yesterday, saying it has enrolled nearly 1,000 customers in less than a week. But that's just an average, and yesterday's Washington Post story makes clear that some customers would have to switch to more expensive plans to get the subsidy. Earlier today, the FCC said that more than one million U.S. households have signed up to take part in the broadband subsidy program, which is being accepted at over 900 broadband providers. Some providers estimate the program could run out of money in four to six months.
"Soon after the EBB [Emergency broadband Benefit program] launched, I started hearing from Washington Post readers about their frustrations signing up with certain ISPs," he wrote. "Verizon elicited the most ire from readers." Instead of letting people enroll online, Verizon requires them to call a phone number to sign up and then "tells some customers the EBB can't be used on 'old' data plans, so they'll have to switch," the Post article said. Verizon is limiting the plans available on both mobile and home Internet service. The EBB is temporary, lasting until the $3.2 billion in program funding runs out or six months after the Department of Health and Human Services declares an end to the pandemic. Verizon customers who have to switch to a more expensive plan in order to get the $50 monthly discount would have to pay the higher rate after the subsidy expires.
"At the end of the program, you will either continue on your plan at the price without the EBB discount or you will end your Internet-related services with Verizon," a company FAQ says. "We will give you an opportunity to decide this at the beginning of your enrollment into the EBB program and again before the end of the program. If you do not affirmatively choose to keep your Internet-related services, the FCC requires that we disconnect those services at the end of the EBB program." Verizon defended its implementation of the subsidy program yesterday, saying it has enrolled nearly 1,000 customers in less than a week. But that's just an average, and yesterday's Washington Post story makes clear that some customers would have to switch to more expensive plans to get the subsidy. Earlier today, the FCC said that more than one million U.S. households have signed up to take part in the broadband subsidy program, which is being accepted at over 900 broadband providers. Some providers estimate the program could run out of money in four to six months.
This is a classic move wrt government subsidies. (Score:4, Insightful)
This isn't because gov't subsidies (Score:2)
My ISP will periodically give me a "free" speed upgrade that just so happens to coincide with a price increase. Since they're a defacto monopoly I can take it or leave it, whereas the "it" I'd be leaving is my internet access.
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I would rather pay to bring fiber to poverty areas, and let them be a utility and bypass such companies like Verizon.
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It is astounding to me that the government needed to further specify this program. It seems simple. Government grants virtual voucher after application. Citizen submits virtual voucher to internet provider to pay for some of the bill. Who would have thought it needed to be specified that the internet provider must accept that for any internet service including any currently active one. There should be no "EBB" plans to segregate folks into. Only their existing offerings.
The virtual voucher should have the l
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You would of thought the people that wrote the bill (wasn't that mostly Democrats, as not a single Republican voted for this last bill) would of had enough experience writing legislation that this could of been avoided.
Shame the Democrats are just as corrupt as the fucking Republicans.
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Doesn't sound legal (Score:1)
Release the lawyers!
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Re: My Nation Blessed Israel (Score:1)
Who exactly is surprised by this? (Score:3)
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Those congress people CHOOSE to spend half their time fundraising. They could spend 10% of the time doing that and if they actually got some actual results in the other 90% of the time, could just show their voters what they accomplished.
But of course that's not how any of this really works.
While I would say throwing the baby out with the bath water is being dramatic, I could see why some people might thinking burning it all down is the only solution.
Who determines eligibility ... (Score:2)
... for the subsidies?
I go to Verizon and tell them to give me their cheap plan. They do. Then I turn around and apply to the gov't for their subsidy.
Why isn't it set up like this?
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... for the subsidies?
The Government. Their EBB already stipulates the eligibility criteria (i.e. sufficient proofs of low income).
I go to Verizon and tell them to give me their cheap plan. They do. Then I turn around and apply to the gov't for their subsidy.
Why isn't it set up like this?
Verizon basically bills the Gov't's EBB program $50 to help pay for the subscriber's plan (provided the subscriber is indeed eligible). But Verizon is looking to screw customers by saying they need an upgrade first... which they don't... but Verizon is just making stuff up at this point.
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With this low-income-focused program, the Gov't will punt $50/month to these households for 4-6 months, so companies get their cheese and citizens get a few hundred bucks to spend on other essential necessities -- like food or gas or rent... or a new tablet, which is also an allowable discount with this
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Worse yet, Verizon has moved most of their work force off-shore [lightreading.com] and is a major tax-dodger [goodjobsfirst.org], so this is just a joke.
Time to cut Verizon off from the federal teat.
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New tablet for little johnny, who was also sent money and continuing to be sent money all this year, can't afford a fucking tablet? That sounds like yet another handout to the tablet makers and don't we have shortages on those things as it is?
Oh well, good thing all this money is free and doesn't have any real consequences behind it. We just print more. In fact, we should keep printing so our dollar value drops compared to so many other currencies. The rest of the world would likely appreciate this and Chin
ugh. What a HORRIBLE mistake (Score:2)
It needs to be changed.
Far better to NOT do subsidies here, but instead, push through for local fiber to be put in to poor areas. Do it as a utility.
This is like the billions that we waste buying heating oil for the poor. We would be better off pushing these places off heating oil and over to geothermal HVAC, assuming that the rest of the building is in decent shape.
Cramming games all over again (Score:2)
So I had a magic approved application ID, a code number. I expected I would simply have to type that code into my ISP's online account management, and they would handle the rest. I don't wanna disclose who my
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Worse then that, after that subsidy runs out (next month?) you'll have to pay the $10 additional beyond what you were paying before trying to use a government program.
This is what we mean when we say government interference only makes things worse.
Maybe the whole idea behind this subsidy was to help Verizon. If we look at it that way, this all makes more sense.
Verizon's forcing unlimited plans for everything (Score:1)
Most of us who spend most of our time on wi-fi just don't need unlimited data plans. I recently dropped mine, and saved $70/month.
I, like most customers, don't like being strong-armed, whether by a government (to get a vaccine that I choose EVERY year not to get) or by a company (to buy a product/service I don't want or need just to get something I do).
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Back in the days when texts were going unlimited, I figured I'd save 10$ a month by having mine limited, I don't text a lot after all. Then for a few months I got a girlfriend that was a text fiend. 2 months into this I noticed my last 2 phone bills were over 400$ each... so much for saving.
Will this "emergency" program actually end? (Score:2)
As a side note, corrupt politicians usually sprea
Why didn't they just hand the money to ISPs? (Score:2)
I mean, pretty much anybody that's been paying attention knew those subsidies were going to funnel directly into ISP hands with little if any benefit to consumers. That's the way government programs work now. On the surface it may be labeled as something to help, protect, or otherwise enrich individuals, but in the end all that money WILL find its way into corporate coffers, and the citizens intended to benefit from it will simply have the pleasure of moving a piece of paper (virtual or real) from one han
Shocking, I say! (Score:2)
I find it hard to believe a multi-billion dollar company would take advantage of a government program to assist the poor. I guess there's a first for everything.