Access Phone Power VoIP & Phone Services News, Updates & Support. Ask questions about your account and stay current with industry news and trends. Free signup!
I am looking at signing up for PhonePower 2-year plan. The one that supposedly costs $200, but actually costs $250 (25 per cent more than advertised). Obviously, PhonePower is not the only company that racks up the price "below the line". In fact Frontier was just sued for doing exactly the same: http://www.consumeraffairs.com/news04/2011/10/class-action-disputes-frontier-internet-fees.html
I was wondering if Phone Power is going to change its advertising practices?
Thank you
Ummm...NO PhonePower clearly states the taxes. :) PhonePower is not false advertising, if you have a problem with their taxes take that up with your congressmen as they collect them on behalf of Good ole Uncle Sam. They make you aware of the taxes:
A. Before you signup
B. When you signup
C. In you order confirmation
Nice try though ;) See me screeny --->>> http://imageshack.us/f/847/failtroll.jpg/
I see that you want to know how the service goes from $199.95 to $250.19. Let me explain the break down in charges so you better understand as I see you are still shopping. The $50.24 in taxes/fees are based on a yearly amount not a monthly since this is pre paid. The E911 fee is $11.88 for the year and would be $.99/mo if it were paid monthly. The Regulatory Recovery Fee is $23.76 for the year and would be $1.98/mo if it were paid monthly. The Federal, State and Local Services fee is 7.3% of the $199.95 which comes to $14.60 for the year. We do not hide the taxes/fees from our current customers or potential customers either. That plan is not falsely advertised as it is $199.95 for the service for the year. I do hope this gives you a better understanding so when comparing companies you have something legitimate to go off of.
I understand that $50 is based on $200 annual amount. That's why I said 25%.
Please note - I never said "falsely" advertising. By the way, neither did Frontier. It is "above the line - below the line" dispute that is at the core of Frontier litigation. For example, "Regulatory Recovery Fee" is not a tax - it's just like "Income Tax Recovery Fee" or "Lease Recovery Fee". So, Phone Power charges 12% in totally arbitrary fee.
As far as taxes go (and one can argue whether E911 fee is tax or not) - Phone Power charges 7.3% service tax + 6% E911 tax = 13.3% compared with 6% for VoicePulse and 0% for non-NY residents by CallCentric (to take two VoIP providers that I am familiar with).
In the end - it is every company's business decision how to advertise. And I am sure your lawyers will be following Frontier litigation with extreme attention. And by the way - I *did* sign up for the 2-year plan despite significant misgivings about this issue. Other considerations - comments on DSL Reports, overall value - ended up being more important. Hopefully, I won't regret!
virshu said:
In the end - it is every company's business decision how to advertise. And I am sure your lawyers will be following Frontier litigation with extreme attention. And by the way - I *did* sign up for the 2-year plan despite significant misgivings about this issue. Other considerations - comments on DSL Reports, overall value - ended up being more important. Hopefully, I won't regret!
Hope you enjoy your service bud :) Best of luck!
You must log in to post.
