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Thursday, August 24, 2006
 

California Public Utilities Commission will allow phone rate changes without regulatory approval

Do you see something similar between phone and electric regulation changes?

In the local news today, we had a change in landline regulation. The competition was going to help the electric prices stay low when when those rates were deregulated. At least where I lived, I never saw a second electric provider. No competition. It was a one electric company or none.  Some people were "off the grid," because the costs of the final distance to their homes were prohibitive. That area was also poorly served by cell phone companies. California's foothills and mountainous areas have many areas, where cell phones don't work and a physical phone line is the only possible low-cost communication. 

Today the news said:

California regulators lifted most price controls for landline phone companies on Thursday, saying competition with wireless, Internet and cable phone providers will keep rates in check.

The 5-0 vote by the California Public Utilities Commission allows phone companies to change their rates without regulatory approval, eliminating restrictions in place since the 1980s.

Some consumer groups objected, arguing the decision allows phone companies to hike prices on poorer customers who have few other choices.

Bye bye phone price caps, public hearings and more. I might be saying bye bye landline. More at Business Week

9:27:28 PM    comment []


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