10-digit dialing is a nuisance in Canada too, where British Columbia and Alberta customers were told to dial the area code for every call.

Verizon FiOS’ “digital phone” product is a far cry from Verizon’s traditional landline service.  Some central New York customers now getting hooked up to the fiber-to-the-home service report they are frustrated because they have to dial an area code for every phone call, even those to friends and neighbors right next door.

Verizon told WSYR-TV that unlike traditional landline service based in your neighborhood, Verizon FiOS phone service is, in fact, a nationwide Voice Over IP (VOIP) service, and uses servers across the country to process phone calls.  Although many traditional VOIP services have since learned ways around the area code limitation, Verizon has not made a similar effort to allow customers to pre-designate an area code.  That would permit Verizon’s servers to assume any seven digit number dialed was within a particular area code and complete the call accordingly.

Instead, Verizon advises customers to learn how to use the included “speed dial” feature to make dialing more convenient.

Verizon’s competitors, including companies like Comcast and Time Warner Cable are quick to point out seven digit dialing is available from them, except where multiple overlaid area codes in the same geographic area exist.  So far, parts of western and central New York have endured area code splits, but for now each service area maintains just a single area code.

Click here to view the embedded video.

WSYR in Syracuse answers viewers’ suggested stories.  Today, it’s about why Verizon FiOS customers are forced to dial 10 numbers for every phone call.  (1 minute)

No related stories.

Courtesy: WCVB Boston

Correction: In an effort to concatenate two stories regarding Springfield, we erred in reporting about Springfield’s move to sell its municipal cable operation to Knology.  That story referred to Springfield, Fla., not Springfield, Mass.  We appreciate one of our readers bringing this to our attention, and we regret the error. –PMD

Comcast customers in Massachusetts are hopping mad over the latest round of rate increases from the state’s largest cable operator — the second in 10 months in some areas.  Higher cable bills for customers will start arriving by early spring.

City officials in Boston expect eastern Massachusetts customers will face up to 2.9% more for basic service this spring.  In western Massachusetts, Springfield city officials finally resolved a prolonged legal battle with the cable operator and granted the company a 10-year franchise renewal that preserves senior discounts for existing customers.

Boston mayor Thomas M. Menino said an examination of Comcast’s cable rates over the past few years proves deregulation “has failed” consumers across greater Boston.  Menino says basic cable rates have increased by 80 percent in the three years since the city’s rate control agreement expired.

Menino wants restored authority to regulate cable rates, and has asked the FCC for permission to bring back the city’s oversight powers.

Click here to view the embedded video.

WCVB in Boston talks with city mayor Tom Menino about the latest round of rate increases for Comcast customers.  Some Boston locals are responding by dumping cable television altogether.  (2 minutes)

Comcast basic service will rise another 4.9 percent this spring, bringing the mostly local-broadcast-channel cable service to $16.58 a month.

The only other major cable provider in Boston, RCN, which serves mostly apartment buildings and other multi-dwelling units, is not planning to increase its prices on the lowest price tier. However, RCN already charges more than Comcast — $17.50 — for comparable service.  Other RCN customers face general rate increases this spring.

Verizon says it has no plans to increase prices in Boston either.  That statement was deemed ironic by some, considering the fact the phone company has never provided FiOS fiber-to-the-home cable service inside the city of Boston.

All affected providers blame increasing programming costs for the rate hikes.

Click here to view the embedded video.

WGGB in Springfield led a recent evening newscast with news Comcast and competing satellite providers are increasing rates in western Massachusetts, with local residents increasingly questioning the value of their cable-TV services.  (2 minutes)

Other coverage you may enjoy:

1. Boston’s Cable Conundrum: Mayor Upset With Comcast Rate Hikes, But Did Little to Bring Competition
2. Rate Increases for One and All: AT&T, Comcast, Cox, DirecTV — Up, Up and Away
3. Mediacom Merry Christmas Rate Hike: Naughty/Nice, You’ll Pay More in 2012
4. Designed to Fail: More on Time Warner’s ‘Mini-Me’ TV Essentials Package & Rate Increases for Upstate NY?
5. Comcast Wants $94,000 from Massachusetts Families to Install Cable Service

Comcast’s controversial deal with Verizon Wireless to cross-promote cable and wireless service has come to fruition in Washington and Oregon with a new introductory offer pitching Comcast’s Xfinity cable with Verizon Wireless service that includes a $300 customer rebate.

The first appearance of the new joint marketing effort started this week in metro Seattle and Portland, and includes nearby communities.  Comcast employees are now staffing at least eight Verizon Wireless stores in Seattle, primarily to pitch the company’s cable service.

The most aggressive offer includes a Visa prepaid card rebate of up to $300 for new customers who agree to bundle Comcast’s phone, Internet, and television service with a new Verizon Wireless smartphone or tablet plan, assuming the two companies can find enough new customers who do not already subscribe to cable or mobile service.

Traditional telephone companies like CenturyLink and Frontier Communications, which provide service in the region, appear to be most at risk from the bundled service promotions.  CenturyLink provides landline telephone service and DSL bundled with satellite television.  Frontier does the same and also offers a limited part of the region FiOS fiber to the home service it acquired from Verizon Communications.

Should customers sign on to the bundled offer from Verizon and Comcast, there would be little reason to do business with either CenturyLink or Frontier.

Consumer advocates like Public Knowledge, along with smaller cell phone companies, satellite provider DirecTV, and other consumer groups have co-signed a letter to the Federal Communications Commission raising questions about the parameters of the cross promotion deal, which the companies and groups say “could be a significant realignment of the competitive landscape in these industries.”

No related stories.

A western Indiana fiber-to-the-home project first envisioned more than five years ago is finally moving forward as it wins unanimous approval at the Tippecanoe County Redevelopment Commission.

Lafayette and West Lafayette, Ind., home to prestigious Purdue University, has a broadband problem.  Broadband advocates claim current providers Comcast and Frontier Communications underserve Tippecanoe County.  The former has put western Indiana on the “long list” waiting for service upgrades, and Frontier Communications offers little more than slow speed DSL in the region.  While Purdue arranges for its own Internet connectivity, off-campus students and area residents have had to make due with what the local cable and phone company offers, which isn’t much according to the locals.

“Comcast service has recently improved, but there is a big difference between Comcast service in a city like Chicago and what they deliver this part of Indiana,” shares Stop the Cap! reader Nick Jefferson, who tipped us to the recent developments.  “Frontier is a complete waste of time, and they have alienated customers across Indiana after taking over from Verizon Communications.”

In 2005, Tippecanoe County officials met with Verizon to encourage construction of its FiOS fiber-to-the-home network in western Indiana, as it had planned for the eastern Indiana city of Fort Wayne.  But Verizon sold off its Indiana landline operations to Frontier Communications, which has since shown little interest in expanding the fiber to the home network it inherited.  Now the county is considering financing a fiber network itself, to be ultimately run and administered by Cinergy MetroNet, which already provides service in the Indiana communities of Connersville, Greencastle, Huntington, Madison, New Castle, North Manchester, North Vernon, Seymour, Vincennes, and Wabash.

Click here to view the embedded video.

WLFI-TV explained the basics of the new fiber-to-the-home network and how it will be paid for in this report from March, 2011.  (2 minutes)

The $40-50 million project would not come out of taxpayer funds directly.  Instead, a novel financing approach would cover construction costs over a 15-20 year period using a combination of MetroNet investor funds and a “tax increment financing” district, which would provide a temporary tax abatement during the period the network is being paid off.  Taxpayer dollars would not be exposed — the financial risks would be to MetroNet and its investors alone.

A fiber to the home service would provide a network capable of gigabit broadband speeds, but historically Cinergy has offered lower speeds to their other Indiana customers, albeit at highly competitive pricing, along with packages of video and phone service.

Larry Oates, head of the West Lafayette redevelopment commission for the project, says the fiber network delivers more than just the promise of better broadband service

“This project could be a great economic development tool,” Oates told The Exponent. “It is up to the businesses and residents who live here to decide what to do with it. We are just facilitating their potential.”

The County Commissioners will decide later whether to give the project a final approval.

Click here to view the embedded video.

WLFI in Lafayette reports Tippecanoe’s fiber to the home network has gotten unanimous approval from the country redevelopment commission.  (2 minutes)

Other coverage you may enjoy:

1. Community Broadband Works: Knoxville’s High-Tech Jobs Move South For Chattanooga’s Fiber Broadband
2. Ontario County, N.Y. Fiber Provider Wants Every Resident to Have Fiber-to-the-Home Service
3. Salisbury’s Fibrant Proposes Near-’Turn-Key’ Headend Network for Community Fiber Projects
4. No Matter the Technology, Fiber to the Home is Better… Period
5. Australia: 90 Percent of Our Residents Will Have 100Mbps, Fiber to the Home Service Within 8 Years

Would-be customers of Time Warner Cable’s broadband service in Vienna, a small town in Oneida County, N.Y. are confused about why the cable company will not provide them with broadband service, even though cable company lines pass right over their respective driveways.

Pete Rauscher sees neighbors within a mile away happily using Time Warner’s Internet service, even though he cannot buy it for himself.

“I’d like to get the service…so do [my neighbors],” Rauscher told WSYR-TV in Syracuse. “It isn’t right that somebody within a mile of us has the same cable service, but we don’t.”

The cable company says it would cost at least $17,000 to provide Rauscher with broadband service, an installation fee way out of his budget.

Parts of Oneida County are still without any broadband service, except for those lucky (and wealthy enough) to receive and pay for a wireless 3/4G broadband connection from Verizon Wireless.  That company charges $80 a month for up to 10GB of usage, much more expensive than what Time Warner would charge.  DSL is not provided in that section of Vienna.

Time Warner says it regularly re-evaluates expansion into currently unserved sections of its service area.  Two sections of nearby Camden now receive cable service from the company, partly thanks to new housing developments in the rural region.  But for now, the cable company remains resolute in not serving customers who do not meet its population density test.

Click here to view the embedded video.

WSYR-TV tells the story of rural Oneida County residents who cannot get Time Warner Cable broadband service, even though the cable company lines cross their driveways.  (2 minutes)

No related stories.

With no progress in sight, stalled contract negotiations between a popular sports cable network and New York’s dominant cable TV company continues to test the patience of customers and sports fans across the state.

Scores of Buffalo-area sports bars have canceled their commercial cable service with Time Warner Cable, generating plenty of business for DirecTV, which still has MSG on the lineup.  Customers across New York have also started to demand a refund of the estimated $4.50 a month Time Warner Cable no longer pays MSG, but still collects from cable subscribers.

Click here to view the embedded video.

Time Warner Cable and MSG’s dispute is ticking off Buffalo sports fans.  WGRZ visits area sports bars and talks with both sides in the dispute to learn the latest.  (4 minutes)

Now New York Attorney General Eric Schneiderman is brokering discussions between the two sides, in an effort to restore coverage of the Sabres, Rangers, and Knicks games all displaced from the Time Warner Cable dial.

“We have had constructive discussions with Time Warner and MSG Networks as part of an ongoing effort to facilitate progress in their talks,” said Schneiderman. “We are hopeful that the two parties will come to an agreement in short order.”

Schneiderman

So far, those negotiations seem to be going nowhere, and Time Warner released a statement stating they have not had any further discussions with the network.  The cable company has also hardened its position with respect to refunding customers for the lost networks.  While early attempts to win credit were successful, Time Warner representatives are now refusing to compensate customers for the loss of MSG.  Instead, they are offering a free month of their mini-pay sports programming tier, which must be requested to access.  After the first month, the cable company will bill customers $5.95 a month for the channels.

“That’s no help,” says Stop the Cap! reader Jean, a Sabres fan in Amherst, N.Y.  “Not only don’t we get our $4.50 back, they want to set us up to pay an extra $6 a month after the 30-day trial of their ‘compensation’ is up.”

Many of her friends who live in suburban Buffalo are dumping Time Warner in favor of Verizon FiOS.  Area sports bars are following.  At least a dozen have canceled their commercial service contracts with Time Warner Cable, many switching to satellite provider DirecTV.  Buffalo’s love affair with hockey is so intense, 5,000 people showed up last week at the First Niagara Center stadium to watch the Buffalo Sabres away game on large screen televisions hung above the rink.

Cashing in

Sports bars depend on lucrative sales during major sports events, so being without the Sabres proved unacceptable, a point driven home by MSG itself which continues to host free viewing parties at local establishments.  Buffalo wings were included for free.

Stop the Cap! reader Ruth Grunberg, who lives in Cortland, N.Y., has started a petition to demand the cable company refund subscribers the $4.50 a month effectively paid for channels they no longer receive.

“They recently raised rates 7% for the second time in a year and they no longer are sending this money to MSG,” Grunberg says. “They have no right to keep it and pay their bloated executives even more money. It is fraud and bait and switch to promise one thing and deliver another. They should offer a la carte service to solve a multitude of problems.”

The city of New York apparently agrees and continues efforts to pressure the cable company into compensating subscribers for the network loss.

Click here to view the embedded video.

WIVB in Buffalo reports area sports bars are canceling Time Warner Cable in droves as its programming dispute with MSG drags on with no end in sight.  (2 minutes)

Other coverage you may enjoy:

1. NY City Wants Time Warner Cable to Refund Cable Customers for MSG-Less Cable Lineup
2. Mutual Blame Game: Time Warner Cable <-> Pulls the Plug on <-> MSG Networks
3. Turner Introduces New TV Everywhere App for Everyone But Time Warner Cable Customers
4. Time Warner Cable’s Annual Holiday Program Disputes: This Time MSG is Threatened
5. Time Warner Cable Gets Innovative to Stem the Flow of Departing Cable TV Customers

Wall Street is encouraging Verizon Communications to sell off its landline telephone operations to clear a path for a potentially-profitable merger with British mobile phone company Vodafone Group Plc.

Analysts at Goldman Sachs Group are behind the research report, which suggests Verizon’s recent non-aggression treaty with Comcast and Time Warner Cable makes the sale of Verizon’s landline phone and FiOS fiber to the home network more likely. Verizon will earn a percentage of every cable TV/phone/broadband subscription sold, effectively making Verizon’s own wired network redundant. Potential buyers could include Frontier Communications, CenturyLink, or Windstream, which all have business plans that depend on landline networks fewer Americans are using.

Should Verizon clear away its legacy landline and FiOS networks, Goldman Sachs suggests, a merger with Vodafone would be a “clear fit” for the two companies.

“The remaining wireless and enterprise businesses would have faster growth and a clear fit with Vodafone’s assets and strategy, making it a more attractive merger partner,” Bloomberg News quotes from the report.

“Given that it no longer faces the threat of integrated cable competitors, Verizon could potentially spin off its remaining [landline] assets,” along with “large” pension and benefit liabilities, the Goldman analysts added.

Verizon would also eliminate its ongoing dispute with the two largest unions representing its landline workers — Communications Workers of America and the International Brotherhood of Electrical Workers.  Both unions are still trying to negotiate a new contract with Verizon after a brief, but contentious, summer strike. Verizon Wireless is almost entirely non-unionized.

Vodafone’s share price has been rising recently, perhaps anticipating a potential merger that would give Vodafone a stronger hand in the U.S. marketplace.

Verizon’s investment in its landline network, along with interest in expanding its well-regarded FiOS fiber to the home service, has remained stalled for the past few years.  Recently, the company indicated an interest in moving away from fiber optics to serve broadband customers, and rely on its wireless LTE 4G network instead.

Verizon’s new CEO Lowell McAdam comes from Verizon’s wireless division, and has not shared his predecessor’s enthusiasm for fiber upgrades.

Merger Partner?

While the prospect of an all-wireless future for Verizon may seem good for shareholders, consumers are likely to pay the price:

1. The Justice Department is reviewing the antitrust implications of the non-aggression treaty between Verizon and its cable competitors;
2. The sale of Verizon’s landline network to an independent provider could doom the company’s fiber optic network and limit rural Verizon customers to 1-3Mbps DSL;
3. Verizon Wireless’ prices reflect its market share and lack of strong competition.  The company’s LTE wireless network, although fast, has suffered from reliability problems and is heavily usage-limited.  It may prove unsuitable as a home broadband replacement for rural customers;
4. Reduced competition for telephone, video, and broadband will likely result in higher prices for existing cable subscribers, too.

Verizon is hardly the first phone company to ponder getting out of the phone business.  AT&T has been lobbying to rescind rural universal service requirements for years.  If successful, AT&T could abandon its rural landline network and provide customers with higher-priced cell phone service instead.

Click here to view the embedded video.

Verizon’s unionized workers are still fighting for a new contract, and released this parody video in response to a company-produced DVD mailed to union workers’ homes.  (3 minutes)

No related stories.

Liu

While Buffalo residents fume about missing the latest matchup between the Buffalo Sabres and Edmonton Oilers, the city of New York is pressuring Time Warner Cable to start compensating their subscribers for the loss of one of the most expensive channels on the basic cable dial.

New York City Comptroller John Liu has asked the Department of Information Technology and Telecommunications, which oversees cable franchise agreements for the city, to make certain Time Warner compensates customers for the loss of MSG and MSG Plus, both removed over a contract renewal dispute.

“Consumers deserve to be compensated for what they have gone through as a result of this dispute, plain and simple,” Mike Loughran, a spokesman for Liu, told Bloomberg News in an e-mail. Loughran said the comptroller’s office would discuss compensation plans with the Department of Information Technology and Telecommunications.

Time Warner says it has already effectively compensated impacted customers, primarily in New York State, with a free month of the company’s added-cost sports programming tier.  Time Warner has also replaced the two MSG networks with NBA TV and NHL Network, which are now likely to remain part of the basic package even if Time Warner reaches an agreement with MSG.  (Sorry football fans, NFL Network is still too costly to be deemed a suitable replacement network.)

Time Warner says there is no way they would pay MSG’s asking price for a renewed carriage contract, which the cable company says represented a 53% rate increase.

As Stop the Cap! reported earlier, the dispute is renewing rumblings about how pay television providers handle expensive sports programming.  An increasing number of cable executives are considering breaking sports networks out of the basic cable package and forcing interested sports fans to pay extra to receive them.  But sports remains a lightning rod issue for many pay TV companies, both among subscribers and politicians.  Disrupt a major sporting event at your peril — something Cablevision learned from an earlier dispute with Fox.

In Buffalo, some customers are dropping Time Warner Cable for Verizon FiOS, at least where that fiber to the home service is available.  Residents served by Frontier Communications or Verizon’s DSL have fewer choices — one of two satellite TV companies.

Verizon already carries a standard definition feed of MSG Networks.  AT&T announced this week it was adding MSG in HD to its U-verse lineup in Connecticut.  MSG has spent this week rubbing salt in Time Warner’s wounds, throwing MSG viewing parties in both Buffalo and New York City.  Now that the city of New York is pressuring Time Warner to cough up refunds as much as $4 or more a month for the loss of MSG, the dispute could prove increasingly expensive.  Some customers tell Stop the Cap! they are already receiving informal compensation for the loss of MSG after contacting the cable company by phone or e-mail to complain.

“I wrote Time Warner on their web contact form and a representative gave me a $5 courtesy credit for the loss of the channels after I explained I was shopping around for another provider,” writes Neil Thomowski who lives in Cheektowaga, near Buffalo.

Click here to view the embedded video.

Buffalo Sabres fans who have Time Warner Cable were left in the dark Tuesday night and couldn’t watch the match-up between the Sabres and the Edmonton Oilers.  WNLO in Buffalo has the story.  (2 minutes)

Other coverage you may enjoy:

1. Mutual Blame Game: Time Warner Cable <-> Pulls the Plug on <-> MSG Networks
2. Time Warner Cable’s Annual Holiday Program Disputes: This Time MSG is Threatened
3. Time Warner Cable Forfeits NFL Network, Again
4. Turner Introduces New TV Everywhere App for Everyone But Time Warner Cable Customers
5. Time Warner Cable Lite: Stripped Down Basic Cable Package Tests in NYC, NE Ohio

Verizon Wireless became the Bank of America of late 2011 when it attempted to impose a $2 “convenience fee” on select customers who prefer to pay their monthly phone bills online or through an automated telephone attendant.  It’s just the latest experiment in customer gouging — the same kind of toe-in-the-water strategic experimenting that unleashed ubiquitous baggage fees on airlines, low balance fees on checking accounts, and the increasingly-common practice of charging customers extra to mail them their monthly bill.

An entire industry of consultants pitch their creative talents to companies like Verizon who want “a little extra” from captive customers.  These specialists sell their expertise identifying the most vulnerable (and least likely to leave), who will grin and bear just about any kind of abuse heaped on them. Many income and resource-challenged consumers are left feeling powerless to protest and reverse unwarranted extra charges.

The consultant gougers-for-hire made millions for large banks when they figured out how to score the biggest bounced check and overdraft fees (simply pay the biggest check first, opening the door to $39 bounced check fees for all the little checks that follow).  Verizon’s $2 fee targeted customers who couldn’t afford to let the company automatically withdraw their monthly payment, or didn’t trust the company to do it correctly.  Even more, Verizon’s fee would target more desperate past-due customers who needed to make a fast payment to avoid service interruption.  Consumer advocates wondered if Verizon was successful charging these customers more, would they expand the fees to cover all online or pay-by-phone payments?

We’ll never know because the public outcry and intensive media coverage during a slow holiday week combined to force Verizon into a fourth quarter revenue retreat, rescinding the fee 24 hours after announcing it.  But Verizon may be pardoned if they feel they were unfairly singled out.  That is because other telecommunications companies have been charging certain customers bill payment fees of their own for years:

Verizon's evolved position on the $2 convenience fee (Courtesy: WTVT)

• Stop the Cap! reader Larry writes to share TDS Telecom, an independent phone company, charges a $2.95 “third party processing fee” when accepting payments by phone.  “In its place you either have to revert to U.S. Postal Service, or agree to electronic billing for on-line payment access.”
• AT&T charges a $5 bill payment fee for “certain customers.”
• Sprint/Nextel not only has its own $5 bill payment fee for those paying at the last minute,  it also forces customers with spotty credit to sign up for auto-pay to avoid a mandatory surcharge.  Want a paper bill?  That’s $2 extra a month.
• Comcast charges a $5.99 payment fee, but only in certain states.
• Time Warner Cable charges fees ranging from an “agent assisted payment” fee ($4.99) to a statement copy fee ($4.99) in some locations.

While Verizon has agreed to drop its latest new charge, the company’s carefully-named bill-padding extra fees attached to monthly bills remain.  In addition to breaking out and passing along all government fees and surcharges, Verizon also bills customers administrative and regulatory recovery fees that, for other companies, would represent the cost of doing business.  These latter two go straight into Verizon’s pocket, despite the implication they are third party-imposed mandatory surcharges.

Had Verizon called their new $2 “convenience” fee a “business efficiency accounting recovery fee,” would they have snookered enough consumers to get away with it?

Click here to view the embedded video.

WTVT in Tampa says Verizon did a complete 180 on its $2 bill payment “convenience fee.”  (3 minutes)

Click here to view the embedded video.

CNN hints the FCC’s potential involvement in Verizon’s business may have had something to do with the quick shelving of the $2 fee.  (2 minutes)

No related stories.

No need to be herded into a Verizon Wireless usage-limited mobile data plan.

New to Verizon Wireless and unhappy being constrained with a usage-capped wireless data plan?  Thanks to a loophole, customers can buy their way into an unlimited access plan Verizon was supposed to discontinue last July.

Some background: Verizon Wireless spent 2011 enticing customers to upgrade to their new 4G LTE phones which use the company’s much faster mobile broadband network.  One of the benefits early adopters received was a free, ongoing trial of Verizon’s mobile hotspot feature, which turns your phone into a Wi-Fi device your other devices (and friends’ phones) can share.  When Verizon elected to discontinue its unlimited data plans in July, the free trial of the mobile hotspot feature went with it.  In its place, Verizon pitched 4G phone owners an unlimited mobile hotspot feature add-on for $30 a month (in addition to the price of your data plan.)

Those who travel often or who want a backup Internet service in case their home or business Internet connection goes down found this a reasonable deal, especially because it carries no data limits or speed throttling, and works on both Verizon’s 3G and 4G networks.

But it turns out this little-known add-on promotion also unlocks the door to an unlimited smartphone data plan Verizon intended to stop selling last summer.

As we explained earlier, just signing up for the unlimited use mobile hotspot plan involved jumping through a few hoops.  But with the help of a feature code, any Verizon representative should be able to look it up and add it to your account.

When they do, something interesting happens.  Verizon cancels any existing usage-limited plan and converts it into an unlimited use plan ($29.99) they stopped selling.  That leaves you with Verizon’s Mobile Hotspot feature for $30 a month and unlimited smartphone data for $29.99 a month.  But here is the exciting part: you can quickly cancel the $30 mobile hotspot feature and will remain grandfathered on Verizon’s unlimited use smartphone data plan.

Slickdeals provides a helpful step-by-step guide, and it sometimes takes a few calls to reach a representative who can manage this successfully:

1. Dial *611 from your Verizon phone, or 1-800-922-0204 from any phone.
2. Wait for computer CSR to go through the main menu. You will need your Verizon phone # and account PIN or last 4 of SSN.
3. Hit option 4.
4. When it asks you what you would like to do today say “Add a feature.” You will be transferred to a live Verizon Customer Service representative.
5. If you have a 3G device (which includes all iPhones): Say you would like to add the $20 2GB 3G Mobile Hotspot FEATURE to your phone. When you add this MHS feature, you will be charged $20/month in addition to the $29.99 unlimited data plan.
   If you have a 4G device: Say you would like to add the $30 Unlimited 4G Mobile Hotspot FEATURE to your phone. According to http://stopthecap.com/2011/07/12/…r-account/ , they may be able to locate this feature via referencing feature code #76153. When you add this MHS feature, you will be charged $30/month in addition to the $29.99 unlimited data plan.
6. After one of the MHS features above are added to your account, you will now have the $29.99 unlimited data plan, which can be verified via the My Verizon app on your device or at http://www.verizonwireless.com/myverizon
7. {OPTIONAL – if you don’t want the Mobile Hotspot feature} Log into My Verizon and remove the Mobile Hotspot FEATURE from your account. It is recommended to wait at least a day to remove the feature. The $29.99 unlimited data plan should remain on your account.
8. If they say they can’t add that feature to your plan, or that you must bundle your data + mobile hotspot service together as a single data plan, tell them thank you, hang up, and repeat the steps above.

Updated 2:45pm EST:  Our regular reader Duffin reports this loophole may be in the process of being closed.  See this article from The Consumerist for further details.

Other coverage you may enjoy:

1. Verizon Wireless Customers: 48 Hours Left to Secure Unlimited Data/Unlimited 4G Tethering Plans
2. How to Get Verizon Wireless’ 4G $30 Unlimited Use Hotspot Feature Added to Your Account
3. “The Price is Too Damned High”: Verizon Wireless Customers Revolt on Facebook Page
4. Verizon Wireless Ends “Unlimited” July 6th; Existing Customers Can Keep Their Unlimited Plans
5. AT&T Downgraded: Customers Rush to Lock In Unlimited Data… on Verizon Wireless