With one seat unfilled on the five-member FCC, commissioners were split along Democrat and Republican party lines over the Verizon petition for exemptions. Although the matter never came to a vote, Verizon's petition was approved under a rarely used statute that allows a company's request to be approved unless the FCC denies it within a certain period of time. That period expired on March 19, and the decision was announced the next day.

FCC Chairman Kevin Martin and Commissioner Deborah Taylor Tate, both Republicans, said in a joint statement that the FCC decision will help Verizon roll out broadband by eliminating "overly burdensome regulations" that deter investment in new services.

But the Democrats on the FCC, Michael Copps and Jonathan Adelstein, said in separate statements that they opposed the Verizon exemptions. Copps complained that the ruling "erases decades of communications policy in a single stroke," and said, "This is not the way to make environment-altering policy changes."

Verizon welcomed the FCC action, which it said will help to control prices. "The end result will be greater innovation, more competitive pricing and more flexible arrangements tailored to meet the needs of our business customers," said Susanne Guyer, Verizon's senior vice president for federal regulatory affairs, in a statement.

President Bush nominated Republican Robert McDowell to be the fifth FCC commissioner last month, but he has not yet been confirmed by the U.S. Senate.