Verizon President Vows Not to Raise N.J. Phone Rates: Report

The head of Verizon said that he would not increase cost of basic telephone service for the next two years if a telecommunications deregulation bill is passed, NJ.com reported.

The announcement comes ahead of vote Monday in New Jersey Senate on the law.

Significant debate has surrounded the "Market Competition and Consumer Choice Act," which would eliminate most New Jersey state laws governing telecommunication companies.  Among the changes, the act would allow a phone company to change the rates without having to seek permission from the Board of Public Utilities. 

Critics fear that if phone companies are not subject to state control, they might increase service fees that would hurt low-income N.J. residents.

Current rules require cable providers to credit customers that go more than 4 hours without service, and prevent phone companies from changing phone rates without customer permission.  Those protections would be rolled back if the deregulation act passes.

Advocates of the bill say that less regulation will lead to increased competition and modernization.

"Verizon New Jersey will not increase the monthly rates for stand alone residential basic exchange service for two years, starting from the date that the legislation is signed into law," Verizon president Dennis Bone wrote to members of the Jersey Senate, NJ.com reported.

The bill enjoys bipartisan support in the Senate.  If it passes on Monday, it will be sent to Gov. Chris Christie for approval.  Christie said he would need to study the law more closely, but has been generally supportive.

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