[F]airPoint Communications will start charging Internet customers an additional $2.97 per month to recover costs for building out its network.
The company notified Jim McMartin, a Montpelier resident, of the new fee in his Aug. 30 bill. The invoice said the fee would be charged on the bill for his services in September.
“In an effort to defray costs associated with expanding network capacity to support the continued increase in customers’ broadband consumption, FairPoint will institute a Broadband Cost Recovery Fee,” the company wrote on the bill.
“This is a Company surcharge, not a tax, is not mandated by the (Federal Communications Commission), and is subject to change,” the bill said.
McMartin said he started a contract with FairPoint in October 2014 for one year of service. When the contract expired, he said the company promised he could keep paying $30.99 per month.
The $2.97 fee increases that price by 10 percent.
“I believe FairPoint is going back on its word to maintain the same rate, in my case of $30.99, for three additional years beyond the initial 12-month contract,” McMartin said.
“I’ve just had it with them,” McMartin said. “They’ve done the same tricks again and again. And I think they’re gouging the public.” He called the new charge “deceptive advertising, at best.”
Angelynne Beaudry, the spokesperson for FairPoint, said the company acted properly. She said FairPoint gave all customers appropriate notice and has been transparent about the fee. “We notified customers 30 days in advance, and it’s also on our website,” she said.
FairPoint is publicly traded as $FRP on NASDAQ and had a market capitalization of $400 million as of Friday.
FairPoint has been the subject of numerous customer complaints in Vermont and was investigated by the state in 2015 for its customer service for telephone customers. To end the investigation, the company agreed to accept millions of dollars in federal subsidies to extend its broadband network.
Beaudry said the fee is to help the company extend the broadband network “to support the continuing increase in customers’ bandwidth consumption.” She said the network is not having problems “per se” with bandwidth use.
Jim Porter, the director of telecommunications and connectivity at the Public Service Department, said the state is “very concerned” and has received about a half-dozen complaints from Vermont customers.
Porter said the state has no ability regulate what broadband companies charge, but it has been consulting with the Attorney General’s office, which enforces Vermont’s strict Consumer Protection Act.
“Obviously there’s a problem if you think you’re paying X amount for a service, and then there are fees attached to it that you’re not aware of,” Porter said.
“On one hand, we need to look at whether it’s confusing to consumers, and on the other hand, we need to look at it further, and is it false advertising?” he said.