VERIZON has reduced by 50 percent the $100 security deposit for new residential customers seeking to have a telephone connection.
The new rate took effect on June 1.
Anthony Mosley, Verizon’s acting general manager , however said the existing security deposit for single line business customers remain the same at $100.
“We reduced the rate to stimulate customer demand. We expect the customer base to grow further,” Mosley told Variety.
Public Law 12-39 requires Verizon to implement changes in “pricing policies.”
J. Michael Fitzgerald, CTC vice chairman, said the rate reduction is also a prerequisite for Verizon to secure a “permanent” license to operate in the CNMI.
“That’s one of the conditions for Verizon to get permanent certification from CTC, to reduce to $50 the security deposit,” Fitzgerald said in a separate interview.
He said CTC is glad that Verizon kept its promise, adding that this would result in more new residential telephone users.
CTC signed Verizon’s “certificate of public convenience and necessity” during its March 14 meeting. The “interim” license was granted on Jan. 11.
Verizon also submitted its tariff rate report to CTC last week, indicating the changes in security deposit rate.
This policy, according to Verizon, applies only to new customers requesting service, and does not retroactively affect existing customers in good standing.
“Should customers who have no deposit record become delinquent in payments, the telephone company may require a deposit even if those customers have previously existing services,” said Verizon.
Effective June 1, all security deposits will be refunded in full upon closing of the customers’ current account and when all outstanding balances are paid in full.
Previously, the $100 security deposit is given back to residential customers by using this amount to cover for their monthly telephone billing until the whole amount is used.
