Tony Wolverton of the San Jose Mercury News reported what we've all been expecting. Any customers who do not have bundled package plans with AT&T can look forward to between a 10% and 25% monthly increase for basic landline phone services. Bundled plans are a luxury that many of our most vulnerable neighbors cannot afford. And now, they will be hit even harder. In January 2009, the basic phone service will increase from $10.94 to $13.50 per month. This increase will also negatively impact verified low-income customers on Lifeline (ULTS). The Lifeline rate will increase from $5.97 to $6.61 a month. In the article, Executive Director Michael Shames, Executive Director of Utility Consumers' Action Network (UCAN), stated that: "Saying that the phone market is competitive is 'sort of like saying that television wrestling is a real sport'".

UCAN's Shames goes on to state that "they're posting record profits at our expense".  AT&T argues along with Commissioner Rachelle Chong of the California Public Utilities Commission (CPUC), that the company hasn't raised rates since the 1990s despite the rise in inflation.  Record profits evidently didn't enter into the equation for the CPUC to ensure that AT&T's record profits continue on the backs of customers and as a courtesy of the CPUC.  Even though the CPUC gave phone companies the right to raise rates in September 2008, so far we have not heard any signals from Verizon or SureWest that they plan to raise their rates.  

The conclusion must be that only AT&T needs price increases to keep up with inflation.  Record profits don't seem to enter into the equation.