Verizon May Have to Share Profit in State
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Verizon Communications Inc., the largest U.S. local telephone company, may be required to share its profit with consumers in California, three years after regulators ended a similar program.
The California Public Utilities Commission said it will hold hearings in the fourth quarter to decide whether to reinstate the profit-sharing plan.
The commission ended a similar program in 1999, in exchange for a rate cut from New York-based Verizon, because it thought competition from smaller rivals would crimp the firm’s profit, a commission spokeswoman said.
Verizon will oppose reinstating the program, a spokesman said.
Verizon shares fell 40 cents to $29.47 on the NYSE.
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