Verizon's New Jersey legacy phone services poised for deregulation

Verizon may get some landline relief in New Jersey: The state's utilities commission will likely move this week to lift some pricing regulations around basic residential telephone service, making it possible for the carrier to raise its rates for plain old telephone service (POTS) as much as 36 percent -- and possibly higher, in time. The agreement Verizon is working out with the New Jersey Bureau of Public Utilities (BPU) would keep landline service rate caps in place for five years, during which the carrier can only raise rates by up to $6. Basic residential service in the state currently costs $16.45 per month. However, after the five-year period is up, Verizon's services will be reclassified as competitive and no longer subject to regulation -- meaning it can set landline rates without having to get BPU approval first. The move to reclassify Verizon's PSTN services has raised the ire of advocacy groups, including AARP. "We know (telephone service) is a necessity for all New Jerseyans, but particularly for people 65 years or older," said AARP New Jersey associate director Evelyn Liebman.