sichermn@beach.csulb.edu (Jeff Sicherman) (02/21/91)
According to a recent article in the {Orange County Register}, the
PUC is preparing to hold hearings (in March) preparatory to allowing
competition for local toll calling, including long distance companies
and 'other' carriers. This will introduce competition for PacBell and
GTE within their LATA's for all but the closest phone calls (about 16
miles - how does compare to the expanded local call radius that was
'given' in return for 'free' touch-tone recently ?).
It is claimed this will produce sharp cuts in rates for toll calls,
which are claimed to comprise 40-50 percent of the average client's
bill. To compensate our friendly neighboorhood phone companies for
this grand sacrifice, the PUC will let basic fees creep higher (they
may be using creep in the wrong context here) because they previously
allowed PacBell and GTE to use high toll rates to subsidize basic
service and because basic phone service rates in California are among
the lowest in the nation.
Personally, it sounds like this will be of benefit mostly to
business while residence costs will rise to compensate. Who will be
subsidizing whom then ?
One of the less attractive aspects of the proposal is that the PUC
is leaning away from allowing a designated toll carrier (1+ for LD)
and will require the caller to dial a three-digit code to reach a
specific regional carrier. Oh sure, one more thing to make life using
a phone more complicated and confusing for the average user. Doubt it
will ever fly. The other potential carriers will not let the advantage
to PacBell and GTE stand (they would be the default if not selected).
Jeff Sicherman