Verizon Communications Inc. returned to federal regulators this week to ask for relief from rate controls in parts of Hampton Roads where it says it faces stiff competition from cable provider Cox Communications Inc.
In a filing Monday with the Federal Communications Commission, Verizon asked again for "forbearance" from regulations on the wholesale rates it charges competitors to use its network. The changes would matter most to carriers such as Cavalier Telephone, which serves customers by leasing Verizon's "last mile" of wires connecting homes and offices.
In 2006, Verizon first filed for forbearance in six East Coast regions, including Hampton Roads, that it described as having adequate competition to control rates. The FCC rejected its request late last year.
Verizon argues that rate contols are unnecessary where Cox has taken so much of its telephone business. Verizon, based in New York, also refiled for forbearance in Rhode Island, where Cox also serves as the dominant cable provider.
While the regulatory change would affect competitors other than Cox, which uses its own cables to deliver service, Verizon wouldn't want to lose more business to Cox, said Edward Shakin, a Verizon attorney. So the company would have an incentive, he said, to keep wholesale rates favorable for those other competitors.
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com
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Verizon
Technology is creating a new environment for the people and Verizon wireless is one of the heavyweights of the broadband and cellular phone businesses, and we can surely hear them now. However, you won't be able to hear them as a provider of land lines anymore, at least in some areas. Verizon has agreed to sell their land line service to Frontier Communications for a lot of cash – more than the biggest installment loans – about $9 billion. Frontier is a telecom company with a reputation for bucking trends, like Time Warner's pushing for a broadband cap. Frontier is steadfastly against a usage cap, as they think that if customers are going to get out their credit cards for service, through Frontier or Verizon, they should get what they want.