Costly Calls

COSTLY CALLS
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] AT&T and Verizon wasted little time taking advantage of the freedom that the California Public Utilities Commission granted them in August. Unleashed from regulations that limited how they priced many of their services, California's largest telcos quickly hiked the fees they charged for many of their custom calling services, such as caller ID and call waiting. The phone companies had argued for unlimited "pricing flexibility" by pointing to the many phone lines they were losing to rivals, such as cable TV operators. They also said allowing them to respond quickly to competitors' promotional offers would (in AT&T's words) ensure that "customers reap the full benefits of competition." Here are a few of the benefits: AT&T has upped the monthly charge for caller ID service from $6.17 to $9, an increase of more than 45%. And call waiting is up 55% to $5. It's worth noting that it costs a telephone company almost nothing to provide custom calling services, which are a function of the software built into phone switches. Thus, the rate hikes will generate more revenue to subsidize other services, such as DSL. Consumers with modest appetites for phone service shouldn't let themselves be milked to support other, heavier users. It may be time for them to cut the cord.
http://www.latimes.com/news/printedition/opinion/la-ed-phones18jul18,1,7086287.story?coll=la-news-comment
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