AT&T jacks up 'measured' phone service rate because it can

[Commentary] With bills for pretty much everything steadily rising, some people try to keep a lid on monthly costs by opting for "measured" phone service. What that means is they're charged a fixed rate for a limited number of local calls, plus a per-minute rate for any additional calls. If you don't use your phone a lot, it can be a really good deal. Too good, apparently. Or so the bean counters at AT&T seem to have concluded.

Beginning March 1, the company's base rate for measured phone service will jump $3 a month to $15.37 from $12.37 — a nearly 25% increase. The charge for additional local calls will be 3 cents per minute. Separately, AT&T's flat-rate charge for unlimited local calls will increase $1.05, to $21 a month. These are simple plans for people with simple calling needs. Their cost to AT&T is negligible. "It's extortion, pure and simple," said Regina Costa, telecom research director for the Utility Reform Network, or TURN, a San Francisco advocacy group. "There's no proof that these price increases are justified." And thanks to our hands-off state regulators, no such proof is required. As of last year, the California Public Utilities Commission has allowed phone companies to jack up basic rates as much as they please.