I've been focused on electric and gas bills but more clients are asking about their internet costs. Just started looking at a Springfield dental office's Charter cable bill and I'm amazed at the number of mystery fees. There's a "Broadcast TV Surcharge" on their internet-only account, "Regional Sports Fee" for a business that doesn't even have cable TV, and something called "Franchise Recovery Fee" that's 3% of the total bill. Are these legitimate charges or is Charter just making stuff up? How do you even verify what internet-related fees are valid?
Anyone auditing cable internet bills? Hidden fees everywhere
Elmer, cable internet billing is a minefield of bogus fees. The "Broadcast TV Surcharge" on an internet-only account is definitely wrong - that fee is supposed to cover programming costs for cable TV service. If your client only has internet, they shouldn't be paying any TV-related fees. Challenge that immediately. The franchise fee might be legitimate depending on your local cable franchise agreement, but 3% seems high. Most I've seen are 1-2%.
I've been auditing cable bills in Youngstown for about a year now. Charter (now Spectrum) is notorious for fee creep. They start with a clean internet bill and gradually add fees over time hoping customers won't notice. I found one small business paying a "$9.99 Wi-Fi Equipment Fee" for a router they bought themselves from Best Buy two years earlier. Always check the equipment charges - that's where they make their biggest profits on bogus fees.
Jim's right about equipment fees being a goldmine for cable companies. In Birmingham I see Charter billing "Modem Lease" fees of $11/month even after customers return the equipment. They count on people not checking their bills closely after making changes. I always verify with the client what equipment they actually have versus what's being billed. Found one restaurant paying lease fees on 3 cable boxes they returned 18 months ago.
The "Regional Sports Fee" on internet-only accounts is another red flag. That fee is supposed to cover ESPN and regional sports networks for cable TV subscribers. I've successfully gotten those removed from several Charlotte business internet accounts by pointing out the client doesn't receive any sports programming. Time Warner (before the Charter merger) tried to argue it was a "network infrastructure fee" but that's complete nonsense.
Don't forget to check for "Service Protection Plan" charges. These are usually $7-10/month for equipment insurance that covers normal wear and tear - stuff that should be covered under warranty anyway. San Antonio businesses get hit with these all the time without realizing they're paying for coverage they don't need. It's like extended warranties at electronics stores - mostly profit for the company with little benefit to the customer.
This is all really helpful. I'm seeing a pattern where Charter adds legitimate-sounding fees to make them harder to challenge. The dental office bill has something called "Network Enhancement Fee" for $4.99/month that started 8 months after their original installation. When I called Charter, the rep said it was for "ongoing network improvements and capacity expansion." Sounds like they're charging customers for their own infrastructure upgrades.
Elmer, that "Network Enhancement Fee" is pure garbage. I see similar fees on Comcast bills here in Pennsylvania. They call it "Technology Fee" or "Infrastructure Maintenance Fee" but it's really just a way to increase revenue without raising the advertised price. Network improvements should be covered by the monthly service fee - that's like a restaurant charging extra for keeping their kitchen equipment working. Challenge every fee that wasn't on the original service agreement.
You guys are making me glad I stuck with DSL for my Des Moines clients who need internet auditing. The phone company bills are bad enough without dealing with cable company creativity. That said, I'm curious about the "Franchise Recovery Fee" Elmer mentioned. Is that the same as a franchise tax? My understanding is those are legitimate pass-through costs from local government franchise agreements, but the percentage varies by municipality.
Norm, franchise fees are tricky because they vary so much by location. In Tennessee they're typically 1-2% of gross revenues from cable services. The problem is cable companies sometimes apply the fee to internet-only accounts when the franchise agreement only covers traditional cable TV services. You have to read the actual franchise agreement with the local government to know what services should be subject to the fee. Most customers just assume all fees are legitimate.
Update on the dental office situation - I was able to get Charter to remove the Broadcast TV Surcharge ($8.99/month) and Regional Sports Fee ($6.50/month) by proving they only have internet service. They initially resisted but agreed to the refund when I mentioned filing a complaint with the Missouri Public Service Commission. Total recovery was $278 for 18 months of bogus charges. The "Network Enhancement Fee" is still under dispute.
Great work Elmer! I've had similar success with Cox Communications here in Louisiana by escalating to state regulators. The cable companies count on customers not knowing which fees are legitimate and which are pure profit grabs. Keep fighting that Network Enhancement Fee - I bet if you push hard enough they'll drop it rather than defend something that's clearly made up. Document everything and don't let them wear you down with bureaucratic runaround.