AT&T; Seeks to Halt Verizon Service Plan

AT&T; Corp., the biggest U.S. long-distance phone carrier, asked federal regulators to halt a review of Verizon Communications Inc.’s long-distance application for New Jersey and investigate early advertising of the service by Verizon.

Verizon admitted to the Federal Communications Commission on June 11 that about 554,000 local telephone customers in New Jersey received advertisements in their bills marketing long-distance service although the company does not have permission to offer it.

Verizon said it has told the FCC it will send a letter to customers who received the advertisement that it was sent to them in error and it would take steps to prevent future mailing mistakes.

An FCC spokesman said the agency is reviewing the matter.

The FCC is set to rule on Verizon’s New Jersey bid by June 24.

Separately, AT&T; said it will reduce a monthly fee used to help subsidize service for poor and rural customers to 11% from 11.5%, effective July 1, after the FCC agreed not to raise its costs.

The agency said it would move cash from an account that pays for Web access in schools and libraries to prevent raising the amount long-distance companies pay into the so-called universal service fund.

Shares of AT&T; rose 41 cents to $10.38 and Verizon fell 36 to $41.35, both on the NYSE.