California's Telco Deregulation Fiasco: Finding Alternative Phone Service in a Competitive Wasteland
THE BAD NEWS
Your telephone rates have increased by between 70-276%.....in just the past year. From a few years ago, we are looking at 1000% price increases. Remarkably, many consumers aren't even aware of these price shocks. And when they find out, they feel helpless to do anything about them.
For the second time in a decade, California regulators have used the state's consumers as lab rats. The first experiment - electric deregulation - was a flaming debacle. The second experiment - telephone deregulation - is turning out to be an expensive bust. And the bust is hitting at exactly the wrong time for the state's consumers.
The results have been sobering. Just last month, AT&T raised prices for several stand-alone features: Anonymous call rejection now costs $5 from $1.90; caller ID rose to $9.99 from $6.17. Some local toll calls - calls that aren't considered long-distance but don't qualify as local - jumped by more than 200%. In 2007, California's AT&T consumers were assaulted by the following phone rate hikes:
- Select Custom Calling services by over 50%
- Local Directory Assistance by 346%
- Fees for returned check by 276%
- Local Toll rates by over 70% for some categories
- Fees for having an unlisted number by 614%
- Fees for late payments by adding a $5.50 NRC to past due balances
When the state Public Utilities Commission (CPUC) made the ill-advised, ideologically-fueled decision in 2005 to abandon oversight of the telecommunications industry, the CPUC vowed to be vigilant to "ensure that the market continues to serve consumers well." Just the opposite has happened. This Commission has thrown the state's consumers to rapacious wolves and it's already proving to be a blood bath. The telecom companies have already set their sights on those consumers who have the least amount of choice or ability to assert their rights. The greed of these companies appears to have no bounds.
Consumer advocates say the elderly and low-income families are hardest hit by the creep in fees. It is the less-savvy consumers who don't have the wherewithal or time to shop for phone services who are footing the bill for this regulatory misstep. What's worse is that AT&T is reaping record profits on the backs of these ripped-off consumers; AT&T announced that it had doubled its profits in the first quarter of 2007 over last year, earning an amazing $2.85 billion.
Why has the CPUC given AT&T carte blanche to raise rates not mandated by the government---rates that go in the company's pockets? Because the CPUC claims there is so much competition that people are free to change carriers. But with the spate of recent phone company mergers that followed the deregulation order, customer choices have disappeared. San Diegans who want local land-line phone service are limited to AT&T and/or a local cable company. That's it. A competitive market for local phone service is but a pipedream in the pipes that the regulators are apparently smoking.
THE GOOD NEWS
OK, I lied. There's no really good news. Until the regulators do their job of protecting California consumers rather than coddling the big phone companies, there aren't a lot of good alternatives out there. However, there are ways in which the motivated consumer can counterattack the decline of phone alternatives. Some of the options are as follows:
Hang up the phone on AT&T: In other words, cancel your "plain old telephone service" (POTS) and use some of the high-tech alternatives. I gave up my AT&T local service in 2005 and went with two alternatives: wireless and Internet. My cell phone serves as a pretty decent substitute for POTS except when I'm in my house, where coverage is spotty. But since I have high-speed Internet access, I use an Internet-based phone provider. Vonage, Packet 8 and other VoIP providers are fine alternatives. Skype's prices can't be beat and the quality is better than cell phones - although not by too much. Between the two, I don't miss AT&T's POTS at all.
Audit your phone bill: The odds are pretty high that you are being saddled with phone services from AT&T that you don't use, don't need and didn't even know about. "Phone Protect", "Wire Pro" and "Call Screen" are largely useless services each of which will add $5 or more each month. These three useless services could add $165 a year to a customers' phone bill. Similarly, the non-published numbers used to be worth a few cents per month. But with the do-not-call lists and unpaid searches on the Internet, just let the company publish your listing rather than forking out an additional $1.53 per month. AT&T's "Message Center" costs $108 a year! For half that price, you can buy a decent phone answering machine. Bottom line: If you really need and use all of the extra phone services, think about one of the bundled plans. But think long and hard because so many of the extra services peddled by AT&T are underutilized and, certainly, overpriced.
No Broadband?: Ugh. That reduces your options quite a bit. Cell phones (prepaid, perhaps). If you use local phone service a lot, perhaps a bundled plan offered by a competing local phone company, such as TalkAmerica or ZTel. Go to ABTolls for the latest information.
But I Just Want POTS: None of the above alternatives serves the casual user who makes 10-20 short calls a week, a handful of long-distance calls, and doesn't need a bundled plan. For those users, AT&T's basic measured rate service ($5.70 per month) or flat rate service ($10.95) with NO additional features combined with a prepaid long-distance calling card (good deals at Costco and Sam's Club) are probably the best alternative that the casual phone user can get in this very uncompetitive, user-unfriendly deregulated telephone world.
Oh, and one other thing you can do. Next time you bump into one of your state elected representatives. Give them a piece of your mind....and your phone bill. And tell them to fix the problem, pronto. Or they might just get cut off too!
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411 Operator
I recently lost my job at AT&T (411 operator). At&T closed the San diego office and Riverside office at the same time. According to AT&t's research customers prefer automation when they call their local utilities, banks, credit cards etc... Pretty soon you will talk to a computer that is supposed to understand your request. By the way you can look up the numbers you want on-line at AT&T's website anyway.
It was a good paying job and I did it well. Now what the computer does not understand will go to one of the few live offices in California, or a off-shore or non-union shop in a right to work state. How is that for progress? I here the service reps in California will be on the chopping block next. You see it is not enough to raise rates multiple times a year for services. They (AT&T) will break the unions and out-source/off-shore every job they can.
As short as two years ago when we were still SBC the focus was on "personalized customer service" and giong the extra mile with tailored phrases for each and every customer. Well, this is AT & T now. I wonder when the Verizon/.AT&T merger will go down, 2-3 years?
Over the las couple years people have been waiting a long time to get a 411 operator 3o rings or so. I guess the PUC used to penalize the company for that. Well now I understand they were no providing oversight any longer. That explains a lot.
Well let me add my name to the unemployment rolls
Effective ways to dispute utility bills cable/dish bills R2
Effective ways to dispute utility bills cable/dish bills R2
Do not get intimidated by the Utility companies
Start with the source - your local service provider.
Find an advocate. CUB, BBB, Etc.
Try City, State, National and Federal organizations.
Remember deregulated service providers are also required to follow local regulations.
Resolving billing issues
If you stay calm and collected you can effectively dispute utility bills, solve the problems and maybe recruit some free help along the way.
It is very common to find errors and various unknown or unauthorized charges on your telecom bill (Telephone, Cellular, Data-Internet Etc.). Review your bills monthly. (Telecom companies bill a month in advance).
Review your phone bill every month to be sure you are billed only for what you requested and at the rates you were quoted. Call your phone company if you have any questions.
Water and sewer bills should also be reviewed in detail, you may be able to reduce you sewer charge (especially if you are watering lawn, pool and pond) or if you have no meter, reduce the monthly charge based on size and consumption.
Many third party deregulated Gas and Electric suppliers who contend that they save you money, actually cost you more. Review the charges versus your local regulated utility company. Insist that they guarantee a lower price and savings over the local regulated gas or electric company. Verify the accuracy of the billing including quantity delivered (therms, KWH).
That king-sized electric bill or gas bill may be appropriate for a family of five, but no way is it right for just you and your spouse. (avoid estimated billing)
Or, maybe your cable/dish company is dunning you for a pay-per-view movie you never ordered.
Errors and overcharges occur from time to time on utility bills and cable/dish bills, and they're usually not in your favor. Sometimes, a quick call to the company can resolve the mishap simply. Other times, disputing a utility bill is not so easy.
Don't let a ridiculous charge send you into a fuming rage, venting your frustrations to the customer representative or screaming for a lawyer. Keep your cool and voice your complaint in detail.
Start with the source. (Your local service provider)
Prepare before you contact the company. Have your current bill, past bills and any canceled checks in front of you. Make sure you have your account numbers and passwords if there are any. Have a notepad and pen handy because you'll want to make notes throughout the conversation and also get information about the customer service representative.
Figure out by how much you want to get the bill reduced, but be realistic about what you would accept for a settlement. Then, contact the company when it's least busy. Friday mornings are good times to call. Avoid Mondays and the days after holidays, since those times are the busiest.
Create the mood. Firm and aggressive presentations work as long as they are not combative. Tell the customer representative you have a problem with the bill that both of you need to review.
When you talk with the customer representative do the following:
Write down the date and time you talked with the person.
Ask for the person's name, identification number and extension before you begin to discuss the bill.
Ask if there's a case number, and jot it down.
Go through the bill line by line to determine the cause of the problem.
Ask what the expected turnaround will be for the resolution.
Write down any price quotes and/or charge adjustments. Ask the customer representative to do the same in the company's computer database.
Call at a different time if you have problems with the representative. Speak to the manager if disagreements persist.
Follow up the call with a letter to the company. The information collected during the phone call should be included in the note. Make sure you sign it.
If all else fail, ask for a supervisor or executive appeals division.
If you are not satisfied. File a complaint with the Utility Commission in your State.
In order to win disputes with utility companies you must keep thorough documentation to prove your points.
Find an advocate.
Recruit support if your calls to the utility company are not sufficient.
You can locate your state's public utilities commission, which oversees utility companies, or get help through the National Association of State Utility Advocates, or NASUCA. This organization represents the interest of utility consumers before state and federal regulators in court. Also your state Citizens Utility Board.
"At the commission you can have an informal investigation and if you are not satisfied you can file a formal complaint," says Jay Draiman, a Utility bill auditor.
He explains that the commission informally investigates the dispute by contacting the company on your behalf. If the commission's answer is one that you don't like, you can file a formal complaint against the utility company. If the formal complaint doesn't make you happy, you can appeal the decision. At this point, he warns, courts of law, most likely a municipal court, are involved and a lawyer might be needed.
Some public service commissions address cable disputes. If not, Consumers for Cable Choice, a consumer advocacy group, says other alternatives exist.
"Most consumers don't know this, but they can call their local franchising cable board. That's the agency that has the ability and authority to adjudicate public complaints," says the auditor.
Not all municipalities or towns have a cable board. So, try calling the clerk of the county or clerk of the city in your area to find out who is responsible for cable complaints.
A visit to the attorney general's office may or may not help. The procedure for handling complaints varies with each office. Some offices, depending on the type of utility, might refer you to other state regulators, and others may attempt to mediate the dispute between you and the company themselves.
Try national and federal organizations.
Consumers can file a complaint with the Citizens Utility Board (which has attorneys on staff), Better Business Bureau, or BBB, a private nonprofit organization that monitors and reports marketplace activities to the public. The bureau sends the consumer's complaints to the company.
"If we have not heard from the company in 30 days, we close the case and suggest small claims court," says spokeswoman for BBB.
According to the BBB, it cannot force a reply from the company and it cannot administer sanctions. It can make a note of the company's unwillingness to respond in the company's reliability report that's provided to the public.
The U.S. government can tackle some of your problems.
Telecommunications issues can be handled by contacting the Federal Communications Commission, or FCC.
Consumers can file an informal complaint with the FCC and, if determined appropriate, the commission will send the complaint to the company or companies named. The FCC allows telephone companies only 45 days from receiving the complaint to respond to you and to provide a copy to the commission. The FCC reviews the response but doesn't issue a ruling or decision.
If the company's response doesn't satisfy you, you can make a formal complaint. This will involve hiring a lawyer and paying a complaint fee. File this type of dispute within six months of receiving the response to the informal complaint.
Consumers can also contact the Federal Trade Commission, or FTC, but the FTC's help depends on the circumstances. According to spokesman, the FTC only gets involved if a charge the consumer did not authorize is placed on the bill.
Contact you phone company about a dispute
If you have a problem with your phone service or bill, contact your phone company as soon as possible to try to get the problem resolved.
• Call the phone company’s toll-free customer service number or reach its cus¬tomer service center through the internet, if available.
• If you cannot get the problem settled to your satisfaction, with the customer ser¬vice representative, ask to speak to a man¬ager. A higher level employee may have more authority to settle your problem.
• Before you contact the company, be prepared. Gather up your bill, receipts or anything else you may want to refer to and don’t forget to write down when you contacted the company, who you talked to, and what that person agreed to do.
• Remember that sometimes it takes sev¬eral minutes to reach a live person at the phone company, so make your call when you are not in a rush.
If you contacted your phone company and it did not help you with your problem, you may file a complaint with the CPUC Consumer Affairs Branch.
The CPUC can help you with complaints about telephone service or the bill, including any charges that you did not authorize or if your phone service was switched to another phone company without your approval. You may contact the CPUC by phone, through the Internet or by mail:
• By phone: 800-649-7570
• Online:
http://www.cpuc.ca.gov/static/ forms/complaints/index.htm
• By Mail:
CPUC Consumer Affairs Branch
505 Van Ness Ave.
San Francisco, CA 94102
If your phone company and the CPUC were unable to help you, you may contact the FCC if you are questioning calls made from or to another state or from or to another nation. You may reach the FCC:
• By e-mail: fccinfo [at] fcc [dot] gov
• Online:
complaint form: www.fcc.gov/ cgb/complaints.html.
• By mail:
Federal Communications Commission
Consumer & Governmental Affairs Bureau
445 12th Street, SW
Washington, D.C. 20554
• By fax:
1-866-418-0232
• By phone:
voice 1-888-CALL-FCC
(1-888-225-5322)
TTY 1-888-TELL-FCC
(1-888-835-5322)
Understanding Your Utility Bill
With the introduction of competitive providers in the telecommunications, gas and electric industry, consumers may find it increasingly difficult to make sense of the various rates, fees and charges that appear on their bills. How can you make sure your utility bill is accurate?
• Carefully review your bill each month.
• Question and investigate any charges that you don’t understand.
• Read all flyers and additional materials included with your bill.
Many of our utilities provide information on understanding your utility bill right on their websites. Links to those sites are shown below. In addition, the Federal Communications Commission’s website provides valuable information to consumers on reading and understanding a telephone bill.
Compiled by:
Jay Draiman, Energy Consultant
Northridge, CA 91324
Email: renewableenergy2 [at] msn [dot] com
POTS
Yes, I agree with you that "ARROGANT THUGS & THIEVES" is greedier than ever, and there really is NO competition. You can't even order equivalent services like the "line hunting" feature on residence service from COX, when this has never been an issue with the ILECs. I still have not heard any equivalent quality to "real" copper POTS. But I have a few suggestions that may help somebody:
For toll calls and long distance calls try the 99¢ Prepaid Phone Card from the 99¢ Store. @ 1¢ per minute the quality is very good. I have used several. I got fed up with the ripoff plans from the IECs and ILECs.
For directory listings, the minimum you are allowed for your listing is the first initial and last name. You can eliminate the address and city at no charge.
For ZONE 3 calls, if your monthly calls for ZONE 3 calls exceeds $3.00 and your provider is Pacific Bell, you should add the METROPLAN to your line for $3.00 MRC and no NRC to activate! This adds all ZONE 3 calls @ flat rate unlimited use.
If the 99¢ Phone Card is too many digits for you and you don't have the SPEEDCALL feature then you could add the EASYSAVER calling plan at no MRC or NRC for all service area toll calls for $0.07 per minute. This is a PACIFIC BELL offering.
You will have to check with GTE/VERIZON to see if they offer any similar services.
***** Hope this helps!****
MOVE!
"We certainly get ripped off in this country." - freddy77mac qoute from 02-07-2008
Fred. Move. Move to Scotland and sleep on your friends couch. If you don't like it and you think other countries have it so much better. Move. Move Now. Thank You.
POTS
I ditched AT&T when the company was about to raise caller ID for the second time in seven months. I went with Cox Cable. However, don't try to get a bundle deal with them if you want another company's long distance, as I did. You can't, even though their web site would suggest you can. I couldn't believe it when AT&T raised their caller ID rates again. A friend of mine in Scotland, whom I call often, was charged only a nominal fee for caller ID and ,eventually, even that small charge was dropped. It is now included in her basic telephone service. We certainly get ripped off in this country.
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