how to raise the phone bill of the average new jersey family
how to raise the phone bill of the average new jersey family
how to raise the phone bill of the average new jersey family
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CONCLUSIONNew Jersey should be proud that its regula<strong>to</strong>rs have delivered <strong>the</strong> lowest <strong>phone</strong> rates for low-income residentsand <strong>the</strong> best access <strong>to</strong> cutting-edge broadband Internet <strong>of</strong> any state – yet <strong>the</strong> New Jersey legislature is threatening<strong>to</strong> undermine <strong>the</strong> system <strong>of</strong> regulation that delivered <strong>the</strong>se key goals <strong>of</strong> telecom policy. S 2664 is likely <strong>to</strong> <strong>raise</strong><strong>phone</strong> rates, weaken quality <strong>of</strong> service and leave state consumers vulnerable if Verizon sells <strong>of</strong>f its landline <strong>phone</strong>service <strong>to</strong> ano<strong>the</strong>r company.Landline local <strong>phone</strong> deregulation has failed across <strong>the</strong> country — delivering higher costs <strong>to</strong> consumers andworse service. States that have implemented local landline deregulation have seen large increases in <strong>phone</strong> rates,<strong>of</strong>ten in <strong>the</strong> double-digits and for some services, prices have more than doubled following deregulation. Andwithout regula<strong>to</strong>ry enforcement, consumers have found that <strong>the</strong>y have little recourse in enforcing <strong>the</strong>ir rights.In particular, <strong>the</strong> multiple bankruptcies <strong>of</strong> landline subsidiaries sold-<strong>of</strong>f by Verizon across <strong>the</strong> country highlight<strong>the</strong> need for vigilant regula<strong>to</strong>rs protecting <strong>the</strong> public interest. Taxpayers and consumers in multiple stateshave been left with degraded service because <strong>of</strong> Verizon selling <strong>of</strong>f local tele<strong>phone</strong> assets <strong>to</strong> undercapitalizedcompanies. New Jersey regula<strong>to</strong>rs need <strong>to</strong> remain in <strong>the</strong> position <strong>to</strong> protect consumers during <strong>the</strong> sell-<strong>of</strong>f <strong>of</strong>landline assets, as state regula<strong>to</strong>rs in West Virginia and Washing<strong>to</strong>n were able <strong>to</strong> do because regula<strong>to</strong>rs wereempowered <strong>to</strong> do so.There are still <strong>to</strong>o few local <strong>phone</strong> service competi<strong>to</strong>rs for competition by itself <strong>to</strong> prevent price manipulationand gouging by oligopolistic companies that dominate local <strong>phone</strong> markets. The debacles in banking andelectricity deregulation across <strong>the</strong> country should make legisla<strong>to</strong>rs cautious in rushing in<strong>to</strong> any kind <strong>of</strong>deregulation. Good regulation in fact is needed <strong>to</strong> encourage useful competition and protect consumers frompreda<strong>to</strong>ry behavior by companies.Ultimately, S 2664 is a bad deal for New Jersey that will just replicate failed <strong>phone</strong> deregulation experimentsaround <strong>the</strong> country.15 How To Raise The Phone Bill Of The Average New Jersey Family: What S 2664 Will Do To NJ Consumers