The New Jersey Board of Public Utilities (BPU) unanimously approved an agreement this week exempting Verizon from most basic landline service regulations, prompting immediate outrage from consumer, senior and labor groups who predict it will lead to rate increases and deteriorating service.

The agreement removes pricing oversight regulations for residential basic telephone service, single-line business telephone service, nonrecurring charges for residential service connection and installation, and residential directory assistance services. That will allow Verizon to charge whatever the market will bear after a transition period. While that may not be a big problem for cell phone users and those who have dropped Verizon for cable company phone service or a broadband-powered Voice over IP alternative, it will leave rural New Jersey residents vulnerable if Verizon abuses its pricing privileges in areas where there are no alternatives.

“Today’s back room deal is bad for seniors, bad for workers at Verizon, and bad for the millions of businesses and homes that rely on affordable, reliable phone service,” said Seth Hahn, the CWA’s New Jersey legislative and political director. “In fact, it’s bad for everyone in New Jersey except Verizon. Something changed between 2011 when Governor Christie said seniors need protections and now I fear it’s the hundreds of thousands of dollars Verizon has funneled to various entities to help Christie’s political ambitions.”

Under the new deal, Verizon will cap its current basic residential rate of $16.45 for what it calls a five-year transition period. Verizon can increase the cost by only $6 during the first five years. After that, the sky is the limit.

Landline service quality – disconnected.

The change is likely to push many of New Jersey’s 100,000 remaining landline customers to competitive alternatives which often cost considerably less, but those with medical conditions, rural residents and seniors will likely be trapped using Verizon’s copper wire landline service indefinitely.

It’s the second major victory for Verizon. Last March, the Christie Administration let Verizon off the hook with no penalties for reneging on its commitment to wire 100% of New Jersey with fiber optics by 2010. New Jersey ratepayers paid as much as $15 billion in surcharges and higher rates for a statewide fiber network that was supposed to reach every home and business. Verizon kept the money and many parts of New Jersey never got the promised upgrades. Now those areas still using decades-old copper wiring are likely to experience an increase in service problems as Verizon continues to decrease its budget to maintain landline infrastructure.

Local officials, particularly those in rural counties, were angry the BPU approved a deregulation measure that will leave consumers exposed to deteriorating service as Verizon focuses on its more lucrative wireless business.

“Who will protect the public interest now,” Greg Facemyer, a councilman in Hopewell Township, Cumberland County told The Star-Ledger by email. “This is a sad day for the senior citizens, students and farmers in small underserved communities like Hopewell Township. Where do New Jersey residents turn when their phones don’t work. This is a clear public safety issue. Spotty wireless coverage is not a reliable alternative to Verizon’s statutory obligation to New Jersey residents.”

Stefanie Brand, director of the New Jersey Rate Counsel saw the vote as a rush to Verizon’s business and profit agendas.

“I am certainly disheartened that they didn’t at least allow more time,” Brand said. “I think the public has a lot to say about this and I thought it would have been a good idea to have the public’s input.”

Verizon says it is the only telecom company in New Jersey subject to the outdated regulations now being dropped. The company says its competitors have done business without price regulations and oversight and have an unfair advantage.

“Something smells at the New Jersey Board of Public Utilities and it’s not May flowers,” responded Daniel Benson, a representative of the 14th district of the New Jersey General Assembly. “At a time when Verizon isn’t maintaining its infrastructure, as evidenced by service declines throughout New Jersey, I don’t believe further deregulation is a sensible policy response. If the agreement is approved, many will be left defenseless to Verizon’s demands and get hit directly where it hurts — their pocketbooks. To add insult to injury, no public hearings are scheduled — those affected can’t even voice concerns on how changes would affect them.”