A decision by the FCC on Monday lifts regulations that restrict what Verizon can charge for high-speed data services, in effect, allowing the carrier to charge what it wishes for these services. But Verizon will likely keep its prices in line with competitors in an effort to remain competitive.

The FCC deregulated a variety of Verizon’s high-speed data services by not acting on a petition the carrier filed in December 2004.

Industry watchers expect other service providers will file similar forbearance petitions with the FCC. Given the FCC’s track record with its hands-off approach, it will likely lift regulatory restrictions for other carriers.

Based on FCC rules, the agency had to act on Verizon’s petition within a year of its relief request or else the petition would be deemed granted. The FCC did grant Verizon extensions on the request, but those extensions expired on March 19. It’s unusual for the FCC not to review and vote on this type of petition, according to industry observers.

The two commissioners hailing from the Democratic Party were up in arms over FCC Chairman Kevin Martin’s lack of action regarding the petition.

Commission Michael Copps said in a written statement that “this sweeping outcome is unaccompanied by any regulatory footsteps. Here we permit a forbearance petition go into effect that erases decades of communications policy in a single stroke…It is end users, particularly small business consumers, who will suffer the consequences.”

Commissioner Jonathan Adelstein echoes Copps’ views. In a written statement, he says: “This course raises the specter of price hikes and fewer choices for businesses, banks, universities, government agencies and other high volume users of communications services, in addition to consumers in Rural America.”

Martin and commissioner Deborah Taylor Tate, the reigning Republicans, issued a joint statement backing the move. In that statement the FCC officials say: “Today, we take another step in establishing a regulatory environment that encourages…investments and innovation by granting Verizon’s petition for regulatory relief of its broadband infrastructure and fiber capabilities. This relief will enable Verizon to have the flexibility to further deploy its broadband services and fiber facilities without overly burdensome regulations.”