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On Friday, the U.S. Federal Communications
Commission ruled against Verizon in a matter regarding its customer-retention
policies.
More specifically, the FCC targeted the
company’s marketing strategy for convincing customers not to switch to cable.
The decision came at the very last minute, as its deadline was set for midnight
yesterday.
The complaint was forwarded by Comcast
Corp, Time Warner Cable Inc and several others in February. The cable operators
accused Verizon of improperly using client information in order to persuade
them not to drop their current service.
Kyle McSlarrow, president and CEO of the
National Cable and Telecommunications Association (NCTA), said Verizon’s
actions are mainly caused by desperation. "Not to put too fine a point on
it: Verizon is losing customers," he wrote in a blog post.
It all started last year when the mobile
service company started contacting people who had begun taking the necessary
steps towards changing providers and offering them special deals. Obviously
enough, that was frown upon by many.
Verizon Wireless,
the no. 2 U.S. mobile service, is a venture of Verizon Communications Inc and
Vodafone Group Plc. At the beginning of April, the company announced its plan
to use the airwaves it won in a government auction one month before, in order
to implement its next generation of high-speed wireless service. The project is
expected to be launched around 2010.
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