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February 3, 2010

PSC tries to crack down on Verizon's poor service

The Public Service Commission is out with an offer to settle complaints against Verizon's bad service record for its traditional, landline phone service. The company was taking too long to fix failed service, missing appointments, the usual stuff. As most telecom is increasingly unregulated, the PSC would explicitly tie Verizon's ability to raise prices for local landline service to the company's service record. Verizon can accept the offer or counteroffer.

Some excerpts from the offer:

As we explained at length in the April 6 Order, Verizon’s service quality performance has fallen far below our regulatory standards, and neither competitive market forces nor an open service quality investigation has improved Verizon’s performance.We rejected the Prior Proposal in part because it left unbridged the structural gap between service quality and rates. A new AFOR [regulatory structure] consistent with our Order will address this fundamental concern.

Among other things, the AFOR we contemplate creates a new set of service quality metrics, holds Verizon directly accountable to its customers (by requiring it to pay substantial customer credits) if it fails to satisfy those metrics, precludes Verizon from raising prices on residential basic local telephone service until it demonstrates service quality improvements, and provides customers with a year (calendar year 2009) free of any increase in residential basic local service rates.

In order to understand and monitor Verizon’s progress, however, we will, as set forth below, require Verizon to submit an annual operational plan (“Operational Plan”) detailing how it will improve its service quality, and monthly performance reports detailing its performance against the Operational Plan and the metrics in the new AFOR. We will hold periodic hearings as well, and we reserve the right to take any and all further steps necessary to ensure that service quality improves, or to respond if it does not.

A core issue at the heart of the Proposal is Verizon’s service quality – or, more precisely, Verizon’s long-running failure to restore customers’ lost service in a timely fashion. We detailed the history of Verizon’s service quality problems and our efforts to investigate and address them in the April 6 Order,9 and we will not repeat that discussion here.

As we said in the April 6 Order, the Prior Proposal “le[ft] Verizon free to increase prices freely without adequate service quality protections – and thus le[ft] customers in a worse position than they sit now.” Moreover, the Prior Proposal would have granted Verizon the equivalent of three years’ worth of price increases on residential basic local service up front before “freezing” them, again without any regard to service quality performance.

Posted by Jay Hancock at 11:30 AM | | Comments (3)
Categories: Regulation
        

Comments

Monday June 7, 2010 we had a failure on the voice portion of our copper wire Verizon landline phone. Very difficult to contact Verizon repair because the voice robot service is not working correctly. Submitted trouble via Verizon website. Was told that repair would be on June 21, 2010 - 2 weeks away!.

Finally contacted Maryland Public Service Commission by phone ((410) 767-8028) and filed a complaint. An hour later Verizon has called back to tell me that they would resubmit the repair for a more timely repair date. However they have not yet set that date.

I recently ordered Verizon Fios a bundled product for TV, internet, and telephone. I was promised a package to include products at a price when only a day later I was told this was not the case. I am currently on the telephone on hold for over 2 hours waiting for a manager to remedy the problem. I have absolutely no confidence in the Verizon customer service.

I'm in Miami, and after 2.5 years of giving Verizon my money, they suggested that it was my phone that was of poor quality so I upgraded. 6 months ago, I called again complaining of missed and dropped calls and they promised to address the problem. Over a week ago I called again requesting service, not excuses and they wanted ANOTHER 2 weeks. They are refusing to allow me to cancel the contract without a penalty. Consumers beware.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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