Office of the Ohio Consumers' Counsel

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AT&T denied the ability to raise basic rates in seven Ohio communities

COLUMBUS, Ohio – May 14, 2008 – State regulators have agreed with the Office of the Ohio Consumers’ Counsel (OCC) that AT&T Ohio be denied the ability to increase the rates it charges customers for basic local service in seven exchanges.

The Public Utilities Commission of Ohio (PUCO) denied AT&T’s ability to raise basic rates each year in the exchanges of Aberdeen, Mantua, Murray City, Olmstead Falls, Philo, Somerton and South Solon. The OCC opposed a December 2007 request by AT&T for pricing flexibility in a total of 11 exchanges. The OCC asserted that residential consumers who simply want basic dial tone service could see their bills increase while having few, if any, comparable choices.

“Our office is pleased that residential customers in seven communities will not be subjected to potential annual rate increases for the most basic telephone services without having comparable choices in the marketplace,” said Janine Migden-Ostrander, Consumers’ Counsel. “AT&T failed to meet state law requirements that these local areas first be open to competition for basic local service and that residents have reasonably available alternatives.”

AT&T, however, was given the ability to raise its basic rates in four other exchanges. Through today’s decision, AT&T received the ability to raise rates each year in the exchanges of Canal Winchester, Groveport, New Albany (all in the Columbus area) and Victory (in the Cleveland area) without further PUCO review. AT&T can increase its monthly basic local rate by $1.25 each year and the price of basic Caller ID by 50 cents each year in those communities.

“The OCC is concerned that consumers in these four communities could see the price of their basic local telephone services increase each year without having real choices for basic service. Customers need to be able to count on reasonably priced telephone service, especially those customers who want the security of having a traditional telephone line, or who do not desire or cannot afford a package of features or a cell phone. Freedom from price regulation should only be permitted where there is robust competition to keep utility prices in check,” said Migden-Ostrander.

The PUCO granted AT&T pricing flexibility for 144 of its other exchanges in Ohio through prior decisions, which the OCC also opposed.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.