PhillyInc

Seems the race to capture phone, Internet and cable-TV customers with bundled digital service has blown back a bit on Verizon Communications Inc. (NYSE: VZ). The Pa. state consumer advocate, Irwin “Sonny” Popowski, has filed a complaint over Verizon’s practice of denying the bundling discounts to customers who get service through the subsidized Lifeline telephone program (some info here and here), which is funded through the federal Universal Service Fund.

"Pennsylvania consumers are being shortchanged because they are not getting access, even if the package is the most economical one for their needs," said Popowski told PhillyInc in an interview yesterday. His department, along with the Pennsylvania Utility Law Project and the Pennsylvania AARP, filed a complaint with the Pa. Public Utility Commission earlier this month.

Popowski says "more than 100,000 Pennsylvania residents" use the Lifeline service, but asserts that about 1 million are eligible for the program but don't take advantage of it. How many of those people want the bundled service? "I really don't know how many customers would take advantage it" if they could buy bundles of services.

Verizon is disputing the claims. Its spokeswoman, Sharon Shaffer, tells PhillyInc that the compani is preparing its formal response to the complaint. But she does give this informal response: "Lifeline is to insure that just the most basic limited local phone service is universally available."

- Jonathan Berr