Verizon Announces New Framework for Commercial Agreements with Wholesale Customers
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NEW YORK - Verizon today announced a new framework for commercial agreements with its wholesale customers, called Wholesale Advantage, which features customized, three-year agreements, restructured pricing and a number of high-value services not offered under the existing government-mandated plan. The framework offers services such as voice mail, inside wire maintenance and high-speed digital subscriber line (DSL) service.
Wholesale Advantage provides a framework for reaching agreements on negotiated, commercially reasonable terms, and ensures the continued availability of end-to-end wholesale services after a federal court order becomes effective this summer. That order rejected existing regulations on which the current wholesale arrangements are based.
"We know our wholesale customers want DSL capability, as well as services such as voice mail and inside wire maintenance. Wholesale Advantage offers these services and also provides a stable environment for our customers and responds to their interests," said Virginia Ruesterholz, president - Verizon wholesale markets.
Wholesale customers currently lease elements of Verizon's traditional voice network at government-set rates in order to provide retail dial tone phone service to their own customers. Verizon's Wholesale Advantage offers stability and a smooth transition to new prices by phasing in increases over a three-year period.
Final terms and rates in any commercial agreement will be based on where the wholesale customer operates, the volumes purchased and other factors. Verizon expects the new monthly recurring charge for Wholesale Advantage service in the first year of an agreement to range from $20 to $24 in the urban and suburban markets where today the substantial majority of lines are purchased at regulated rates. In each of the two subsequent years, average monthly charges would increase by $1 to $2.
In addition, under Wholesale Advantage, wholesale customers can negotiate for additional services to sell, such as DSL and voice mail. Furthermore, Verizon's current business-to-business ordering processes will continue unchanged under Wholesale Advantage. Verizon will continue to provide the same on-line electronic order processing and other features and functionality that it provides today.
Verizon believes agreements should be reached with wholesale customers in direct negotiations. "One on one discussion is the best way to finalize an agreement that addresses the interests of the individual carrier and Verizon, and enables both sides to focus on the future of their business," said Ruesterholz. "Wholesale Advantage offers wholesale customers a way to eliminate uncertainty about their costs and provides a smooth transition to a stable and predictable environment. This framework will benefit wholesale customers, retail customers and the entire industry."
A Fortune 20 company, Verizon Communications (NYSE:VZ) is one of the world's leading providers of communications services, with approximately $68 billion in annual revenues. Verizon companies are the largest providers of wireline and wireless communications in the United States. Verizon is also the largest directory publisher in the world, as measured by directory titles and circulation. Verizon's international presence includes wireline and wireless communications operations and investments, primarily in the Americas and Europe. For more information, visit www.verizon.com.