Industries Government

SCC extends price cap on basic residential phone service

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The State Corporation Commission has extended for two more years a price cap on Verizon charges for basic local residential telephone service.

However, a similar limit on basic business service will not be continued and is scheduled to expire at the end of this year.

The commission accepted an agreement between SCC staff and Verizon, Virginia’s largest provider of local telephone service, which will limit increases for basic residential service to $1 per year.

A five-year price cap on basic residential service, in place since Jan. 1, 2008, would have expired on Dec. 31. Now the price increase limit will continue until Jan.1, 2015.

Basic local exchange telephone service is limited to basic dial-tone service and does not include such features as call waiting, voicemail, and caller ID. About one-third of Verizon’s customers still receive basic service.

The majority of Verizon’s customers are on plans that “bundle” a number of services. The price cap provision does not apply to such plans.

For business service, the price increase limit has been three dollars $3 per year, per line. That price limit is not being extended and will expire on Dec. 31.


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