State of New Jersey

STATE OF NEW JERSEY
Division of The Ratepayer Advocate
31 Clinton Street, 11th Fl
P. O. Box 46005
Newark, New Jersey 07101

Press Release

For Immediate Release
Thursday, January 08, 2004

For Further Information
Contact: Tom Rosenthal
Tel: 973-648-4931

 

 

Ratepayer Advocate Seema M. Singh Announces Victory
In 7-Year Battle Over Free Directory Assistance Calls
Will Save Ratepayers $24 a Year

Ratepayer Advocate Says Consumers Will Keep
Four Free 411 Calls a Month From Verizon NJ

 

Newark, NJ – Ratepayer Advocate Seema M. Singh announced that the Ratepayer Advocate successfully negotiated a settlement with Verizon NJ that will maintain for consumers their four free directory assistance calls per month.

“In carrying out our mission, we have protected consumers’ interests by requiring Verizon NJ to provide four free 411 calls per month,” said Ms. Singh after the New Jersey Board of Public Utilities (BPU) approved the settlement today, Friday, January 9, 2004.

Verizon NJ sought to do away with providing customers four free directory assistance calls per month.  Verizon NJ argued that directory assistance service is a competitive service and therefore it should no longer be subject to regulation by the BPU.

The Ratepayer Advocate disagreed with Verizon NJ’s position.  According to Ms. Singh, “Based upon our evaluation of directory assistance service, we believed that this service did not meet the criteria for reclassifying it as competitive.” 

If Verizon NJ had succeeded in convincing the BPU to reclassify directory assistance as a competitive service, the more than 4 million Verizon NJ customers would have paid up to $24 per telephone line a year, based on directory assistance usage, because of the increase in residential rates from 20-cents to 50-cents per call for 411 and the elimination of the four free calls.

This matter has been in litigation since 1997 when Verizon NJ first filed a petition to reclassify this service as competitive.  The Ratepayer Advocate challenged Verizon NJ’s request before the BPU.  

In 1999, the BPU agreed with Verizon NJ and reclassified directory assistance as competitive.  The Ratepayer Advocated appealed this decision based on procedural “due process” grounds as well as other arguments.  The Appellate Division agreed with the Ratepayer Advocate and remanded the matter back to the BPU for evidentiary hearings.

On remand, the Ratepayer Advocate again contested Verizon NJ’s request to reclassify directory assistance service as competitive.  Evidentiary hearings were held in March of 2003 before the BPU.  In an attempt to avoid further protracted and costly litigation, the Ratepayer Advocate began settlement talks with Verizon NJ to resolve this matter on terms that would be agreeable to all parties.

As a result of those settlement talks, the Ratepayer Advocate was successful in persuading Verizon NJ to maintain four free calls per month until 2006.  In exchange, Verizon NJ will be permitted to charge 50 cents for each additional directory assistance call per month above the four free calls.  In 2006, the four free calls per month will not be automatically eliminated.  Verizon NJ must file a petition seeking BPU approval to eliminate the free calls and change the rates for this service.

“Maintaining four free directory assistance calls per month was crucial in having the Ratepayer Advocate settle this matter with Verizon NJ,” said Ms. Singh.  “Many consumers still rely on directory assistance service, especially those who can’t afford a computer and the monthly Internet service access charges to look up contact information on the Internet.  It is not in the public interest to eliminate the free directory assistance calls at this time,” concluded Ms. Singh.

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The Division of the Ratepayer Advocate is an independent state agency that represents the interests of utility consumers and serves as an active participant in every case where New Jersey utilities seek changes in their rates or services.  The Ratepayer Advocate also gives consumers a voice in setting long-range energy, water, and telecommunications policy that will affect the delivery of utility services well into the future.

Additional information on this and other matters can be found at the Division of Ratepayer Advocate’s website at http://www.rpa.state.nj.us


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Copyright (c) State of New Jersey, 1996 - 2003
New Jersey Division Of The Ratepayer Advocate
31 Clinton Street 11th Fl.
Newark, NJ 07101