Verizon Gets OK for Long-Distance Service

Verizon Communications Inc., the largest U.S. local-phone service provider, won federal approval to sell long-distance service in Massachusetts, even as regulators said it might charge rivals too much for some services. The Federal Communications Commission said the company gives rivals access to lines and switches they need to compete, yet three of the agency’s four commissioners complained about rates the New York-based company charges rivals for some network access.

The decision to let Verizon enter the $2-billion Massachusetts market is the first test for Republican FCC Chairman Michael Powell on the long-distance issue. Powell favors deregulation and analysts expect him to be more lenient on regional phone companies seeking to sell long-distance service.

Powell said that even though Verizon’s application has some weaknesses, “it is consistent with our precedent and merits approval.”

The four-member commission approved the application 3-1, with Democrat Gloria Tristani dissenting because of the high rates Verizon charges competitors to switch calls in Massachusetts. Powell warned that the commission will continue to monitor switching rates to ensure fairness.

Verizon praised the decision and said it will move quickly to file applications to sell long-distance service in as many as six more states by the end of the year. Rival AT&T; Corp. criticized the decision and predicted phone rates will rise.