The Public Utilities Commission of Ohio has denied Verizon North pricing flexibility on basic local telephone service and caller ID in the Portsmouth area and the Chesapeake, Jackson exchanges. However, the company was granted the flexibility in 21 other exchanges.
“They (Verizon) have pricing flexibility on packages and extra services such as three- way calling, and have had that for several years,” Matt Butler, spokesperson for PUCO said. “This will give them the ability to increase prices for basic local service and caller ID, which has been frozen.”
When Verizon intends to raise the rates, they have to file a notice with the commission. The company also must notify affected customers 30 days prior to the effective date of any rate increase.
The commission’s decision capped the increase to $1.25 for the basic local service and 50-cents for caller ID per month.
A year from now the company could again increase fees an additional $1.25 for local service and 50-cents for caller ID per month.
In this case, Verizon had to prove to the commission on an exchange-by-exchange basis that competition for their services does exist. “They were able to do that in a number of exchanges,” he said. “In three exchanges, the commission determined they (Verizon) did not prove that there was competition.”
The commission granted Verizon pricing flexibility in the Ashland, Athens, Bowling Green, Brunswick, Cambridge, Circleville, Delaware, Englewood, Marion, Medina, Montrose, New Philadelphia, Norwalk, Plain City, Port Clinton, Sylvania, Tipp City, Trotwood, Troy, Wadsworth and Wilmington exchanges.
“The company could come back to the commission and ask for the Portsmouth exchange again. They would have to have some additional data to prove there is competition,” he said.
In response to the decision, Todd Colquitt, president of Verizon in Ohio, said. “Fair competition and market forces will continue to keep prices in check and drive innovation and customer choice, making consumers the true beneficiaries here.”