PUC Gives Verizon Price Flexibility Over Basic Service In Urban Areas
By Tony Romeo
PHILADELPHIA (CBS) - For the first time in the history of telephone regulation in Pennsylvania, it appears the state's biggest basic landline provider will soon be able to set its own prices for local exchange service in urban areas without approval of state regulators.
Essentially, the joint motion adopted by a divided Public Utility Commission declares as "competitive" 153 Verizon "wire centers" in Pennsylvania, encompassing Philadelphia, Pittsburgh and other urban areas in the state. That means the PUC has determined Verizon has demonstrated the "availability of like or substitute services" in those areas.
The PUC says it will monitor the impact of its decision. The chairman of the PUC says the decision is a step toward "modernizing" the regulation of telecommunications in Pennsylvania.
But in a dissenting statement, Commissioner James Cawley says he fears that providing Verizon with unhindered pricing freedom over basic local exchange service will endanger both the affordability and availability of universal telephone service.
