how to raise the phone bill of the average new jersey family

CONCLUSIONNew Jersey should be proud that its regulators have delivered the lowest phone rates for low-income residentsand the best access to cutting-edge broadband Internet of any state – yet the New Jersey legislature is threateningto undermine the system of regulation that delivered these key goals of telecom policy. S 2664 is likely to raisephone rates, weaken quality of service and leave state consumers vulnerable if Verizon sells off its landline phoneservice to another company.Landline local phone deregulation has failed across the country — delivering higher costs to consumers andworse service. States that have implemented local landline deregulation have seen large increases in phone rates,often in the double-digits and for some services, prices have more than doubled following deregulation. Andwithout regulatory enforcement, consumers have found that they have little recourse in enforcing their rights.In particular, the multiple bankruptcies of landline subsidiaries sold-off by Verizon across the country highlightthe need for vigilant regulators protecting the public interest. Taxpayers and consumers in multiple stateshave been left with degraded service because of Verizon selling off local telephone assets to undercapitalizedcompanies. New Jersey regulators need to remain in the position to protect consumers during the sell-off oflandline assets, as state regulators in West Virginia and Washington were able to do because regulators wereempowered to do so.There are still too few local phone service competitors for competition by itself to prevent price manipulationand gouging by oligopolistic companies that dominate local phone markets. The debacles in banking andelectricity deregulation across the country should make legislators cautious in rushing into any kind ofderegulation. Good regulation in fact is needed to encourage useful competition and protect consumers frompredatory behavior by companies.Ultimately, S 2664 is a bad deal for New Jersey that will just replicate failed phone deregulation experimentsaround the country.15 How To Raise The Phone Bill Of The Average New Jersey Family: What S 2664 Will Do To NJ Consumers