Verizon wins concession in push for deregulation: It seeks legislation, too, for the right to change phone rates

Feb 02, 2008 (Richmond Times-Dispatch - McClatchy-Tribune Information Services via COMTEX) -- VZ | news | PowerRating | PR Charts -- Verizon Communications Inc. grabbed another concession from the State Corporation Commission yesterday as it campaigns to free itself entirely from state rate regulation.

The commission agreed to modify a December decision, in which it declared parts of Virginia have enough competition to deregulate phone rates.

Verizon said it was pleased with yesterday's move, which it said will "result in a more accurate picture of competition in Virginia." However, the company indicated it plans to continue deregulation efforts in the state legislature.

In December, the commission established competitive benchmarks, by which it determined that 62 percent of Verizon's state residential lines and 57 percent of its business lines can be deregulated. Those lines are in the state's largest urban and suburban areas, including parts of the Richmond area.

That decision did not go far enough for Verizon, and it requested in early January that the commission try again.

For insurance, Verizon also had legislation introduced into the 2008 General Assembly, which would circumvent the commission, by getting lawmakers to deregulate phone rates statewide. The legislation is still before the House of Delegates and state Senate.

The legislation would encourage more investment and competition throughout Verizon's Virginia service area by eliminating the need to apply the competition test in all areas, said the company's state president.

Yesterday, the commission gave more weight to competitors such as Cavalier Telephone in determining competition.

Consumer advocate Irene Leech of Montgomery County said the change is reasonable.

The commission declined to make other Verizon-requested changes broadening the definition of competition. Some of the refused changes were related to broadband services.

For competitors who sell broadband phone service, such as voice-over-Internet, the commission must make sure that consumers have real access to those services, Leech said.

"Virginia law," the commission wrote, "requires us to ensure that deregulation takes place where the facts show that Virginians have realistic options to Verizon's local telephone service, not theoretical options, and that these options 'reasonably meet the needs of consumers.'"

Contact Greg Edwards at (804) 649-6390 or gedwards@timesdispatch.com.

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