Pacific Bell refutes reported 411 rate hike

Sep 12, 2002 12:00 PM, Glenn Bischoff

According to an SBC spokesman, Pacific Bell has asked the commission to classify directory assistance as a Category 3 service, giving the company flexibility in setting rates. In California, telephone services are classified in one of three categories based on the level of competition. A Category 1 service is one that is provided solely by the incumbent carrier. Category 2 service is one for which competition has emerged, while a Category 3 service is one for which competition is flourishing.

While incumbent providers of Category 3 services are free to charge whatever they believe the market will bear, the spokesman said that with the number of directory assistance providers – including AT&T, MCI/WorldCom, Sprint and Metro One – SBC’s rates would be in line with its competitors.

“If we didn’t we wouldn’t have any customers,” said the spokesman.

He added that SBC believes the suggestion that it is quietly lobbying for a rate hike is erroneous and unfair. “We make hundreds of regulatory filings every month. We don’t call the media on every one of them,” said the spokesman.

In addition, the approval process for such a request is 12 to 18 months and offers plenty of opportunity for thorough review.

SBC anticipates the PUC will grant its request based on the evidence.

“We have just 41% of the local directory assistance market, but we’re the only regulated company in a very competitive market,” said the spokesman. “We don’t have the freedom to respond to our competitors.”