Verizon withdraws New Jersey 271 application

Verizon Communications has withdrawn its application to provide in-region long-distance service in New Jersey under Section 271 of the Telecom Act.

The withdrawal came as something of a surprise, as everything seemed in place for the FCC to approve the application. According to Verizon, the company had met the 14-point checklist that establishes whether competitors have adequate access to the carrier’s facilities, and its operations support systems in New Jersey received the first perfect score from a third-party auditor.

In addition, the New Jersey board of public utilities (BPU) “adopted some of the lowest rates in the country for other carriers to use our network,” said Tom Tauke, Verizon’s senior vice president of external affairs and public policy, in a statement. Both the BPU and the United States Department of Justice endorsed the application.

However, Verizon recently contemplated a reduction in the rate it charges competitors for “hot cuts”--the physical process of switching a customer to another carrier. The carrier received “clear signals” from the FCC that adjusting the rate now--despite the fact Verizon was thinking of lowering the rate, not raising it--might have an adverse effect on winning the commission’s approval, said a Verizon spokesman.

“The record didn’t support that type of change at this point in the process,” he said. “To resolve that procedural issue, we felt it was better to pull the application.”

FCC Chairman Michael Powell said in a statement that the omission of critical evidence in the application “underscores the importance of the commission’s requirement that applications be complete when filed.”

Tauke said Verizon would refile the application “promptly.”