Pacific Bell refutes report concerning proposed 411 rate hike

SBC Communications subsidiary Pacific Bell has refuted a story published today by the San Francisco Chronicle that said the carrier had “quietly” asked the California Public Utilities Commission for “free rein to charge whatever it wants” for directory assistance.

An SBC spokesman said the reporter misinterpreted the filing. According to the spokesman, SBC has asked the commission to classify directory assistance as a Category 3 service. 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. A 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 a number of providers of directory assistance services--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 lengthy--12 to 18 months--and offers plenty of opportunity for thorough review.

The spokesman said that 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. We don’t have the freedom to respond to our competitors.”