Verizon Communications Inc.
says a
Virginia State Corporation
Commission (SCC) decision to cut
regulation in some of the company's
most populous markets does not go
far enough.
The SCC found that
Verizon had not proven its
claim that Virginia's entire
statewide telephone market was
competitive under Virginia Law.
The telephone company filed a
petition Dec. 28, 2007, asking
regulators to reconsider.
Verizon wants the commission to
change rules in a
Dec. 14 order that are to be used
to determine what telephone exchanges
are competitive and, therefore, where
rates should be deregulated.
Verizon says more phone-service
providers should be counted in
determining competition than the new
rules allow.
According to the test developed by
regulators,
Verizon has adequate competition
to deregulate rates for 62 percent of
its residential telephone lines and 57
percent of its business customers.
To qualify as competitive, an
exchange must have two or more
Verizon competitors that are
available to 75 percent of customers.
Additionally, at least one competitor
must provide its own wires to 50 percent
or more of the homes.
Verizon argues that the test
ignores rivals such as Cavalier
Telephone and Ntelos, which operate
their own switches but use wires leased
from
Verizon to reach customers.
Verizon has also asked that the
rules for establishing the
competitiveness of Internet voice
services be changed.
It has asked that the rule be changed
so that the availability of broadband
services to 75 percent of customers in a
phone exchange would be enough to
consider Internet voice service as an
effective competitor.
In its order, the commission found
that parts of the Hampton Roads,
Northern Virginia, Richmond and Roanoke
areas had sufficient competition to
reduce regulation of prices for
residential customers. It found
sufficient competition for
small-business customers in parts of the
Hampton Roads, Northern Virginia and
Roanoke areas.