November 17, 2004

The US's second- and third-largest cell phone carriers are lowering controversial surcharges on customer bills that have brought the companies more than $250 million in 2004 alone.

Verizon Wireless and Sprint Corp. say they're reducing the fees, starting this month, because costs of a federal order to allow "phone number portability" — when people switch carriers but keep the same cell numbers — have fallen sharply since it took effect a year ago.

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Their assertion that costs are down raises questions about whether other wireless companies continue to collect monthly fees as a source of additional revenue rather than to offset expenses.

Verizon Wireless, the biggest winner of customers since number portability was first permitted a year ago, planned to announce Monday that it was eliminating all but a nickel of the 45-cent monthly fee it charges for regulatory expenses.

Sprint is lowering its regulatory recovery fee to 25 cents, the second reduction since June. The fee, which was more than doubled to $1.10 in July 2003, was reduced to 40 cents in June.

Source: Mobiledia