California PUC has let down its guard since phone deregulation

[Commentary] State regulators said they'd look out for consumers after California's phone market was deregulated in 2006. They didn't.

That's the conclusion of a blistering report to be released Friday by California's Senate Office of Oversight and Outcomes, a watchdog agency that monitors legislative and regulatory changes. State senators got their first look at the report July 15. I also got my hands on a copy. In a nutshell, the report says the California Public Utilities Commission has largely turned its back on the telecom market after declaring four years ago that sweeping deregulation would usher in a new era of market competition and lower prices for consumers. The report says two companies, AT&T Inc. and Verizon Communications Inc., control 85% of all land lines statewide and 65% of telecom services in general — about the same market share they held before deregulation. Meanwhile, prices for some services, such as having an unlisted phone number, have soared by as much as 600%.