Verizon Gets Clearance

New York City's Verizon Communications (NYSE: VZ) said on Monday the U. S. Department of Justice (DOJ) has recommended that the Federal Communications Commission (FCC) approve Verizon's application for permission to offer long-distance service in New Jersey.

"Conditions in New Jersey local telecommunications markets now appear favorable to fostering competition," Charles James, head of the Justice Department's antitrust division, said in a statement.

"Competitors have made progress in penetrating the business market in New Jersey, and the Department believes there are no longer any material non-price obstacles to residential competition in the state," he said.

James, however, expressed concern over a "significant increase" in one-time charges by Verizon for when it physically disconnects a customer from its network and switches it to a rival. He also suggested that oversight may be needed of Verizon's performance in its wholesale billing functions in New Jersey because of problems in neighboring Pennsylvania. The two states use the same systems.

The DOJ routinely gives the FCC an evaluation of long-distance applications, which the commission considers before it makes a final decision. Verizon filed the New Jersey application with the FCC on December 20. The FCC must rule on the application by March 20.

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Author: NJBiz.com