Verizon negotiates flexible pricing in New York State

Verizon Communications has reached agreement with the New York Department of Public Service on a new regulatory plan that would give the carrier greater pricing flexibility but still hold Verizon to stringent performance criteria that has marked the carrier’s service since the original plan was approved in 1995. The two-year plan is subject to the approval of the New York Public Service Commission.

Under the proposed plan, Verizon would be able to adjust rates up or down provided that any overall increase is limited to no more than 3 percent of intrastate revenues in New York. Moreover, any increase in basic service would be limited to $1.85 in the first year of the plan, and 65 cents in the second year.

A Verizon spokesman said the agreement has no connection to a recent PSC order that requires the carrier to reduce the rates it charges competitors for unbundled network elements by 30 percent. In fact, Verizon had proposed a three-year plan that called for pricing flexibility of 2.5 percent annually.

“This deals with the pricing flexibility that we need to continue to be a major player and contributor to the state’s economy,” said the spokesman. There is much more competition in New York today, and as other telcos are able to change prices we want to have that same flexibility.”

The spokesman said Verizon remains committed to providing good service and has no qualms about the quality-of-service provisions contained in the proposed plan.

“It’s pretty much the same measurements and commitments we made in the previous plan,” he said. “Let’s face it--service is the name of the game. We want our service to be good, our customers want our service to be good, and this is sort of an insurance plan to make sure that everyone’s staying on the straight and narrow.”