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Michigan Charges Verizon's Rates Are Excessive

June 19, 2006

Verizon • Local Service • Wireless Service • "Enhanced" Services • Long Distance • DSL Service • Verizon Fios --- News • Verizon Snaps Up Alltel • Verizon Rolls Out Unlimited Calling • Verizon Wireless Changes Contract Policy • Verizon Cuts Off Northern New England • Verizon Joins BellSouth in Retreat From Unexplained New DSL Fee • Verizon Tacks On New DSL Fees • Verizon Limits Its "Unlimited" Wireless Broadband Service • Verizon Wireless Cuts Early Termination Fee • Michigan Charges Verizon's Rates Are Excessive • Verizon Completes MCI Purchase

Michigan Attorney General Mike Cox has filed a complaint with the state Public Service Commission (MPSC) against Verizon, saying its local phone rates are excessive.

"Lowering telephone rates and obtaining customer refunds are important for working families and individuals who find it hard to pay these bills and still make ends meet," Cox said. "My office will continue to fight for lower telephone bills for Michigan citizens."

Cox said the complaint would be the first case under the newly enacted Michigan Telecommunications Act (MTA) seeking lower rates for consumers.

Under the new MTA, Verizon was to offer a local 100-call package at the same rate that they had previously offered for their 60-call plan, thus allowing consumers to get 40 additional calls, 100 total, per month for the same price they were paying for the 60-call plan.

The complaint contends that instead of following the new law, Verizon has increased their rates by $1.20 per month. Cox estimates that if Verizon were to continue with the unauthorized charges, they would illegally collect more than $1,000,000 under the new MTA.

"As we predicted last fall, it would only be a matter of months before one of the communications conglomerates attempted to violate both the spirit and letter of the new MTA," said Bill Knox, Government Affairs Director for AARP Michigan. "We applaud Mike Cox for taking this battle directly to the Michigan Public Service Commission."

The MPSC is expected to review the complaint and assign it to an administrative law judge for a hearing. A final decision will likely be made by the MPSC within six months.

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