TELECOM Digest OnLine - Sorted: Verizon Raising Rates on Many of its Services in Ohio

Verizon Raising Rates on Many of its Services in Ohio

John Nolan, Dayton Daily News (dayton@telcom-digest.org)
Fri, 11 Aug 2006 01:17:39 -0500

By John Nolan

DAYTON | Verizon Communications Inc. has taken advantage of a
state-granted privilege to raise rates on its own for some telephone
services, Ohio's consumer advocate said Thursday.

The increases included raising the monthly charges for call forwarding
from 75 cents to $2, Caller ID with name and number from $7.95 to
$9.25 and three-way calling from $2.75 to $3.50, according to the Ohio
Consumers' Counsel. The state agency represents residential customers
in Ohio utility rate cases.

The consumers' counsel said it is the first increase Verizon has put
into effect since state regulators in June gave the company permission
under "elective alternative regulation" to raise rates at will for
some optional service features. In exchange, the company agreed to cap
prices on basic local exchange service, basic Caller ID and basic call
waiting.

The price increases allow Verizon to compete with providers of
wireless phone service, Internet-based phone capability and cable
television companies which offer phone service, Verizon spokesman Bill
Kula said.

The number of local telephone lines Verizon provides in Ohio has
dropped from 976,000 in January 2003 to 852,000 in January 2006
because of the competition, Kula said. Verizon has responded by
offering bundled service options to make it more affordable for
customers to take combined phone, high-speed Internet and digital
video services, he said.

Verizon -- which also offers wireless service -- trails only AT&T
Ohio in the number of residential phone lines provided in
Ohio. Verizon's service area includes parts of Montgomery, Miami,
Preble, Greene, Clinton, Butler and Warren counties. Troy, Englewood
and Trotwood are the largest communities Verizon serves in the region.

Eight other telephone companies, including AT&T Ohio, have received
Ohio regulatory approval to raise rates for optional service in
exchange for capping charges on basic service. The Ohio Consumers'
Counsel said that could be unfair to consumers in areas without other
providers of similar services.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

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