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DoJ recommended Mon. that FCC approve Verizon’s long distance ent...

DoJ recommended Mon. that FCC approve Verizon’s long distance entry in N.J., saying company’s 2nd Sec. 271 application eased its earlier concerns about pricing of hot cuts. Justice had recommended FCC approval first time around but had cautioned Commission…

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to take hard look at one-time fees Verizon charged for completing hot cuts for competitors. Hot cut is process by which telco disconnects customer phone line from its own switch and connects it to competitor’s switch. Verizon’s new application specifies lower hot cut charges, which DoJ said were similar to charges company recently had agreed to in N.Y. Justice continued to express concern about accuracy of Verizon’s wholesale electronic billing process, which is relied upon by CLECs. Verizon Vp Sarah Deutsch said billing system in question was same one company used in Pa., where FCC already had cleared it for long distance entry. She said billing issues raised by CLECs in this proceeding actually weren’t about basic system, but stemmed from billing disputes. DoJ also recommended FCC institute “post-approval monitoring of Verizon’s compliance with the obligation to provide nondiscriminatory access to wholesale billing.” Verizon withdrew first application March 19 after FCC raised questions about procedural problems as well as hot cut prices, and refiled March 26.