NETWORK WORLD NEWSLETTER: STEVE TAYLOR AND LARRY HETTICK ON 
CONVERGENCE
11/01/04
Today's focus:  Voice service fees compared

Dear [EMAIL PROTECTED],

In this issue:

* Fees: Cox's voice-over-cable service vs. MCI's voice service
* Links related to Convergence
* Featured reader resource
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Today's focus:  Voice service fees compared

By Steve Taylor and Larry Hettick

Last week, Larry's boss was complaining about the extra $2 fee 
he was charged by airlines to get a hard copy of his receipt. 
This prompted the inevitable office chatter about frivolous and 
costly fees across many industries - not the least of which are 
the fees charged by telephony service providers.

So Larry pulled out a recent MCI Neighborhood bill (for 
September in California) and his Cox Communications telephone 
bill (for October in Virginia). Both services offered a flat 
rate for unlimited local and domestic calls, voice mail, and 
custom calling features like Caller ID and three-way calling. 
For the packaged MCI service, the service bundle was $49.99. For 
Cox, the same features cost $14.99.

We attribute $30 of the price difference to the UNE-P charges 
MCI has to pay SBC for the local loop; Cox also has the 
advantage of sharing Larry's service costs with his Internet and 
cable TV service, so the remaining $5 price difference can be 
attributed the bundled cost structure.

As for the additional fees, that's where the fun begins when it 
comes time to understand and pay the bill. The MCI taxes and 
surcharges list included fees for 911; a Teleconnect Fund; two 
High Cost Funds; a Lifeline surcharge; federal excise tax; 
federal, state, and local surcharges; network access surcharges; 
a relay service and communications device fund; a federal 
universal service fee; and a local number portability fee. Total 
taxes and surcharges from MCI totaled $15.04.

The Cox Communications fees included charges for federal excise 
tax, a local utility user tax, E911 tax, a relay fund charge, a 
public right-of-way fee, an FCC access charge, and a federal 
universal service fee. The total Cox added charges were $10.15.

Next time, we'll take a look at Vonage fees, and report on what 
the FCC chairman has to say about Internet telephony taxes and 
regulations.
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To contact: Steve Taylor and Larry Hettick

Steve Taylor is President of Distributed Networking Associates 
and Publisher/Editor-in-Chief of Webtorials.Com. For more 
detailed information on most of the topics discussed in this 
newsletter, connect to Webtorials.Com 
<http://www.webtorials.com/>, the first Web site dedicated 
exclusively to market studies and technology tutorials in the 
Broadband Packet areas of Frame Relay, ATM, and IP.  He can be 
reached at <mailto:[EMAIL PROTECTED]> 

Larry Hettick an industry veteran with over 20 years of 
experience in voice and data.  He is currently Vice President 
for Wireline Solutions at Current Analysis, the leading 
competitive response solutions company. He can be reached at 
<mailto:[EMAIL PROTECTED]> 
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