Verizon Communications Inc., the biggest U.S. local-telephone company, won U.S. Justice Department backing to sell long-distance service in Rhode Island, a market worth more than $300 million annually.
The agency told the Federal Communications Commission, which makes the final decision on Verizon’s request, that the company has opened its local markets to competitors as required by law. It urged the FCC to review prices local-phone rivals pay to rent space on Verizon’s networks.
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Verizon and regional phone companies created in the 1984 breakup of American Telephone & Telegraph Co. are barred from selling long-distance service in some states until they prove local-phone competitors have access to lines and switches they need to provide service.
“The vast majority of Rhode Island customers have a choice when it comes to deciding who will provide their local phone service,” Assistant Attorney General Charles James said in a statement.
Verizon, formed in 2000 by the merger of Bell Atlantic Corp. and GTE Corp., has won FCC approval to sell long distance in New York, Massachusetts, Pennsylvania and Connecticut. It has a separate application pending to sell the service in New Jersey.
Bloomberg News
