3:34 p.m. | Updated Verizon Wireless says it is canceling its plan to impose the fee. See our new post.
Verizon Wireless’s announcement of a $2 “convenience fee” for paying bills in certain ways has caught the attention of the Federal Communications Commission, which regulates telecommunications in the United States.
The F.C.C. said in a statement on Friday afternoon that it would look into the new fee, which goes into effect on Jan. 15.
“On behalf of American consumers, we’re concerned about Verizon’s actions and are looking into the matter,” the statement said.
Verizon said on Thursday that it would soon impose a $2 charge on customers who make one-time payments using credit or debit cards over the phone or online. The announcement sparked protests from Verizon customers all over the Web.
Verizon did not respond to e-mails or phone calls requesting comment on the F.C.C.’s statement.
Ross Rubin, executive director of the Connected Intelligence unit at the NPD Group, a research firm, noted that the commission has historically looked into charges on cellphone bills.
In June, for example, the F.C.C. cracked down on “cramming,” unauthorized fees put onto a consumer’s phone bill by the phone company or a third party. As a result of an investigation, the F.C.C. fined four small phone companies $11.7 million.
Mr. Rubin said that the Verizon fee was likely designed to encourage customers to enroll in the free automatic payment plans, which will help ensure that bills are paid on time. That could help reduce the company’s overhead, because carriers incur hefty costs in trying to collect money from customers.
Of course, that could alienate Verizon customers who have unstable income — and it could be part of Verizon’s strategy to focus on better-off customers, Mr. Rubin said. Recent signs suggest that Verizon is focusing less on the lower tier of the market. Some of the latest smartphones offered by Verizon, like the Droid Razr ($300 with a two-year contract) and Galaxy Nexus ($250 with a two-year contract), are relatively expensive.
