T1 Installation Costs

How low can your telco go? Members of the ISP-Tech list examine installation pricing and tariff issues.

[February 18, 2000]

On the ISP-Tech list in January 2000, Shadow asked for feedback about T-1 installation costs. One element of his question concerned tariff fees:

"My local telco informed me that the installation fee for a new channelized T-1 was going to be $1,925. This is much higher than the last T-1 we had installed (for which the pipe installation fee was waived). They said that the $700 installation fee couldn't be waived this time 'because of tariffs.' Can anyone shed some light on the issue of tariffs?"

One respondent pointed out that there might be some leeway regarding tariffs:

[PL suggested negotiation]: "Point out to them that a tariff states the 'maximum allowable charge,' which doesn't mean they can't do better for you. Talk to a supervisor, if necessary, and make it plain that you expect pricing comparable to what you've already paid or you'll call a CLEC."

Another wrote that the telcos can't just change tariff fees at will:

[PF explained]: "It takes an act of legislation to change the tariffs."

However, one respondent pointed out that there are ways telcos justify such charges:

[JER disagreed with PF's assertion]: "If the telco lacks the facilities for installing equipment, they are well within their rights to charge whatever they want for 'special construction.' Last time I checked there's nothing on the FCC's web site (www.fcc.gov) about tariffs for special construction. But installs for which special construction is needed are not tariffed."

Raising the issue of 'special construction' charges elicited a flurry of responses:

[TJ wrote]: "There's no such thing as 'special construction charges.' If they have to install special equipment or more lines that is their problem, not yours."

[AS pointed out a flaw in TJ's claim]: "Unless it is zoned residential. If it's a business zone, however, they must provide the necessary facilities and cannot make you pay for construction."

However, one respondent reported charges specifically for construction in business zones:

[JJ wrote]: "I had a construction charge of $940 for installing an ISDN circuit at my building. My local telco charged me only $60 for running a 14.4kps line to my home in the middle of the woods."

—End