AT&T and Verizon raise phone rates while claiming the need for less regulatory oversight due to increased competition

Posted January 29th, 2008 by Dr. Dog von Con...

It's funny how phone companies that lobby regulators for "pricing flexibility" only seem to move their prices in one direction: up. "Flexibility" implies the ability to flex in multiple directions, and while I recognize it's just another fancy lobby-speak term, it's time to call it what it really is: "price increasing flexibility." It's certainly flexible, because the respective company may decide to raise a particular rate 3% or 300%, but make no mistake, there will be no downward flexing.

As if it were a surprise, the phone giants are raising rates again, some by as much as 300%. This USA Today story points to a growing source of criticism. While the largest telecom companies continue to lobby for decreased regulatory oversight on the basis of increased competition, their phone service rates are rising. In California, phone companies have been largely deregulated since late 2006, but as this chart from TURN shows, major service providers such as AT&T and Verizon have increased rates over and over again. Basic economics tells you that in a competitive marketplace prices should fall...so what can you do? Ditch your landline phone. Internet phones can provide a wider variety of services at a fraction of the cost of traditional landline phones. Using your cell phone as your primary phone can also be cheaper than maintaining a landline phone.

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Communications: Landline -

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AT&T and Verizon Raise Rates AGAIN

On March 16th, 2008 ucansue says:

AT&T and Verizon are raising rates again. The AT&T basic rate increases will impact all Lifeline pariticipant rates, as well. Click on link to see the new increases:

http://www.cpuc.ca.gov/NR/rdonlyres/05CB60D0-1E81-4C74-B010-0B68E1B3F707...

• AT&T
The prices for residential basic services will change as shown below to reflect an inflationary adjustment as permitted by Commission Decision 07-09-020.

Main Changes: * Monthly Flat Rate Service for AT&T will increase from $10.69 to $10.94 (2.36% increase) and the Lifeline Flat Rate Service will increase from $5.34 to $5.47 (2.3% increase). The Lifeline Measured Service will increase from $5.70 to $5.83 (2.3% increase) and the Lifeline Measured Service monthly rate will increase from $2.85 to $2.91 (2.11% increase).

* Monthly package and some option rate increases for Verizon are much higher than AT&T. If one considers the market share of these 2 providers, AT&T would come out ahead throughout the country. Therefore, Verizon most likely has to keep rates higher to make the profits that AT&T gets on sheer volume coupled with ongoing rate increases.

Go to www.cpuc.ca.gov link or type in link provided above. The Commission adopted Uniform Regulatory Framework and allowed most retail service full
pricing flexibility in late August 2006. Therefore, these mega giant carriers are free to increase whatever they choose whenever they want.

ILEC VS. CLEC

On February 13th, 2008 Dot (not verified) says:

I am an employee of a CLEC (Competitive local exchange carrier). Our company leases lines from Verizon in bulk at wholesale and we pass the savings on to the consumer. I speak to Verizon customers on a daily basis and according to them, Verizon has continued to raise prices all the time. People that I speak to tell me that they really were not aware of any other choices in telecom providers other than cable. I think we need to get the word out! There are alot of commercials for Long Distance Only companies but none for alternatives on "Good old land line service". Consumers need to be aware of the choices they have available to them. As a natural gas consumer, I recieve flyers in my bill letting me know there are different providers to use. They offer "Apples to Apples" comparisons. I wish the Telecommunications industry would do the same. With Verizon and AT&T raising their prices the way that they do, that does nothing for the economy. I am frustrated at this whole situation. Thank you for taking the time to listen to what I have to say.
DOT

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