Where's the real in all these deals?
By IVAN PENN, The Consumer's Edge
Published March 24, 2007
Bright House Networks launches ads, touting their latest deal. Verizon issues press releases to announce its offer.
And then a war of words ensues from two companies that love to hate each other.
"These guys really fry my beans," Verizon's Bob Elek says of Bright House.
Joe Durkin of Bright House retorts: "I'm having a good time cooking them up."
They're trading barbs over the latest telecommunications offers their companies are making to consumers: get land-line phone service, Internet and TV for less than 100 bucks.
Verizon announced its $99.99 campaign a couple of weeks ago. Brighthouse single-family home customers can receive a similar package for $99.95 and multi-family residents for $57 a month for 12 months.
But wait! There's more.
While out of state, seasonal Florida residents can keep their home phone and high-speed Internet service for up to six months for free with Verizon.
Bright House says it's been offering the deal for two years.
Like in those TV commercials for some product we don't need, I'm waiting for the next promo:
But wait! Act now and Verizon and Bright House will throw in a free set of... Ginsu Knives?
After all the services and package promotions, the consumer is left wondering: Is any of this a good deal and do I really need it?
First, know that you never pay the advertised price. There are other fees - line charges, box fees for TVs and, of course, taxes.
Some of those government fees are disappearing, finally, such as the federal excise tax on telecommunication service that dates to the Spanish-American War. (The IRS is giving a tax break for that. The standard deduction is $30 to $60).
But there are plenty of other taxes that will drive the bill higher. And the telecoms have hidden fees.
Bright House points out that Verizon's $99.99 plan has a $6.50 line fee - another tax - and a $4.99 fee for the TV channel box.
Bright House does not have the exact same fees, but if you want more than one channel box (because we have a whole lot of televisions in our houses these days), you'll have to pay $7.50 each.
With Verizon, you need those set boxes to get channels. With Bright House, you don't need a set box to get the basic 100 channels, but the box adds a couple hundred channels.
In the end, the $99 package could cost you closer to $120 or $130 with fees and taxes. That can add up to almost $400 a year above the package promotion. And $57 could quickly turn to $99, if you're not careful.
So here's the edge:
- Decide what services you need before entering an agreement. Many consumers have abandoned land lines and use wireless service. Do you need an Internet connection? What kind?
- Ask for the total cost, including fees and taxes. The additional fees can increase your bill by as much as a third.
- Shop for a company. Some deals might sound similar, but they vary. You could save hundreds of dollars a year by making an extra call.
The Consumer's Edge is a twice-monthly column to help consumers in the marketplace. Ivan Penn can be reached at ipenn@sptimes.com">href="mailto:ipenn@sptimes.com" mce_href="mailto:ipenn@sptimes.com">ipenn@sptimes.com or (727)892-2332.