Groups protest Verizon's proposed special access rate hikes

Verizon wants to raise rates for middle-mile broadband access about 6 percent

Members of the NoChokepoints Coalition will ask the U.S. Federal Communications Commission to stop Verizon Communications from raising the rates for middle-mile broadband connections that many businesses rely on.

Verizon has proposed to raise the rates on its so-called special access services by 6 percent, according to the coalition. Special access fees are the rates that businesses and other large telecom customers pay for connections to carriers' central switching facilities.

Members of the coalition planned to file petitions opposing the rate hike late Monday with the FCC, a coalition spokeswoman said.

While global broadband prices are dropping, Verizon has proposed its second increase in less than a year, said Maura Corbett, NoChokepoints' executive director.

"It doesn't take a PhD in Economics to figure out that if a company is able to continually raise prices in a market where the costs keep dropping, that it's probably using that market as its personal ATM machine," Corbett said in an email. "So while the rest of the economy struggles to recover from one of the worst economic downturns in history, Verizon continues to overprice this critical broadband input simply because nobody is stopping them."

Verizon said prices for affected DS1 and DS3 services have declined by more than 15 percent over the past decade, when adjusted for inflation, even after the proposed increase.

"The marketplace for high-capacity services, including special access, is competitive, and it is growing increasingly competitive as wireless backhaul generates increasing demand," Verizon said in a statement.  "Customers have more choices as cable providers, fixed wireless providers, and other competitive providers have expanded their offerings to meet the growth in demand."

Corbett disputed Verizon's numbers.

Members of NoChokepoints include Public Knowledge, Sprint Nextel, U.S. Cellular and XO Communications.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is grant_gross@idg.com.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

Logitech Ultimate Ears Wonderboom Bluetooth Speaker

Learn more >

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

Shop safely with our award-winning security solution. Protect yourself this Black Friday and get the exclusive Black Friday discount for Bitdefender 2019!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?