March 22, 2002 -- Verizon will notify the Federal Communications Commission (FCC) that it is withdrawing its application to offer long-distance service in New Jersey. The company plans to promptly refile.

"We have met the checklist, our systems received the first perfect score in an independent third-party test, and the New Jersey Board of Public Utilities adopted some of the lowest rates in the country for other carriers to use our network," said Tom Tauke, Verizon senior vice president of external affairs and public policy. "Both the New Jersey board and the Department of Justice endorsed the application.

"However, there have been procedural concerns raised regarding an issue that has been the focus of dispute between the parties - the non-recurring price we charge other carriers to perform what is known as a 'hot cut,'" Tauke said. "To address these concerns, Verizon is withdrawing its application and will refile shortly."

A hot cut is the process used to disconnect a line over which a customer already is receiving service and to connect it to another carrier's switch.

"Verizon will refile promptly," Tauke said. "This will give the parties an added opportunity to comment and allow the commission to grant the application expeditiously. Doing so will permit the residents of New Jersey to share in the $1.8 billion in local and long-distance savings now enjoyed by their neighbors in other Northeast states where we offer our easy-to-understand long-distance services."

Verizon filed its New Jersey long-distance application with the FCC on Dec. 20.

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