Bye Bye Covad a.k.a. MegaPath a.k.a Speakeasy. You May Want to Avoid Them or Pay Another Big Fee on Top of Your Bill

Filed Under (Tech Stuff) by admin on 26-10-2010

             Modified 2010f November 2010 11:21:25 AM

I have used Covad Business DSL services for at least 7 years at a secondary location for backup servers for some Vazoom stuff. Recently, I received a bill with an added $8.55 Regulatory Surcharge. I decided to call them and they claim that since their merger with Megapath and Speakeasy Internet went into action they decided to impose a 9.5% increase on all customer accounts. 


Covad Billing Update

Regulatory Recovery Surcharge
October 7, 2010

What is the Regulatory Recovery Surcharge?

The Regulatory Recovery Surcharge (RRS) recovers Covad’s costs that result from local,
state and federal taxes, fees and regulation, including its payments to governmental entities

and to underlying network service providers.

How much is the Regulatory Recovery Surcharge?

Effective immediately, the rate will be 9.5% due to increases in Covad underlying costs, as
described above.

How often does the Regulatory Recovery Surcharge change?

We receive quarterly and annual adjustments in state and local sales taxes, regulatory
charges, and other monthly fees assessed by telecommunication providers. We try not to

adjust the RRS unless necessary.

They were absolutely uncaring to the fact I was a longtime customer.  Apparently this now monthly recurring surcharge was previously paid for by Covad but now it isn’t covered. I was never notified of the increase due to electronic billing and it’s a total lets get some more profit scam especially for 9.5%. Covad or Megapath or whatever you are now peace out. Great way to treat your long time customers. DSL service charges are a rip off as it is compared to the alternatives with even greater levels of throughput. I am sure they are losing a lot of DSL customers to cable and FIOS services. If you think their 1.5/384 w/ no static IPs w/  2 Year contract service will only cost you $79 as advertised on their website  think again. Try close to $90 a month. Now I will look for a new provider. There are plenty of them.

Here is a snippet from my latest bill showing this crazy regulatory fee they are now imposing on all customers:

From Date To Date Service Charges Event Type Quantity Price Total Disc Total Price
10/23/10 11/22/10 Dialup – 10 Hrs free Monthly Charges 1 $0.00 $0.00
10/23/10 11/22/10 IP Address – 5 BIA Monthly Charges 1 $10.00 $10.00
09/23/10 Payment Payment – Thank you -$89.95
10/22/10 10/22/10 Regulatory Surcharge Surcharge 1 $8.55 $8.55
10/23/10 11/22/10 Standard DSL Plus v.07 3.0/768 BIA Monthly Charges 1 $79.95 $79.95

Total Current Charge for account #122411 (excludes taxes) $98.50


3 Responses to “Bye Bye Covad a.k.a. MegaPath a.k.a Speakeasy. You May Want to Avoid Them or Pay Another Big Fee on Top of Your Bill”

  1. Hey Rob,
    I actually switched all of my stuff over to Comcast Business. Not sure if you have Comcast Business where you are located however my monthly bill now for even faster service is in the mid $70s. I was mostly dissappointed in the fact that the Covad reps could care less how long I have been a customer for. I’m not sure if the mergers have affected employee morale but they were just so unwilling to do anything.

  2. Hi Rhian. Thanks for your post. I am with speakeasy/Megacrap.

    How do you like Comcast business?

    I am in the D.C. area.


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