Verizon Wireless & Affiliates are Harming Verizon Wireline Customers

Verizon Wireless & Affiliates are Harming Verizon Wireline Customers

Comments and Report

  • COMMENTS: : Common Cause–NY, Consumer Union, Communications Workers of America and the Fire Island Association Call for an Investigation of Verizon Wireline and Wireless Companies Business Relations by the New York State Commission — Data from New Networks research reports.
  • NEW REPORT: Verizon Wireless and the Other Verizon Affiliate Companies Are Harming Verizon New York’s (The State-based Utility) Customers & the State.

In 2009, Verizon New York got the NY State Public Service Commission to grant a rate increase on residential customers, claiming that Verizon needed the extra money for “massive investments in fiber optics” and major financial losses. And it would appear that most of the losses are not from business issues, but from Verizon Wireless being able to short change the wired company, Verizon New York.

These losses appear to be from major cross-subsidization and other transactions between and among the Verizon affiliates and VNY including: a) The affiliates are not paying competitive prices or their fair share for use of the networks, b) The affiliates are dumping expenses into the wireline business, and c) The companies may be getting free services from VNY including advertising on phone bill inserts and access to customers’ account information.

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