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Cincinnati Bell granted pricing freedom despite lack of competitive options in Bethany, Harrison, Little Miami and Williamsburg

COLUMBUS, Ohio — December 10, 2008 — Basic local service rates could increase for more Cincinnati Bell customers due to a decision released today by state regulators, according to the Office of the Ohio Consumers’ Counsel (OCC).

Despite opposition from the OCC, the Public Utilities Commission of Ohio (PUCO) has granted Cincinnati Bell’s request to be able to annually raise basic rates through “alternative regulation” in the Bethany, Harrison, Little Miami and Williamsburg exchanges.

“We are disappointed that over the OCC’s objections, consumers in four more Cincinnati Bell exchanges could experience rate increases each year for the most basic of telephone services,” said Janine Migden-Ostrander, Consumers’ Counsel. “With consumers already struggling to make ends meet in a troubled economy, higher prices for essential telephone services would create even more of a burden.”

The OCC asserted that Cincinnati Bell did not demonstrate that residents have competitive choices for basic local telephone services. Alternative regulation allows telephone companies the ability to raise rates if the PUCO decides a competitive test is met demonstrating that an exchange is open to competition and residential customers have reasonably available alternatives.

Under alternative regulation, a telephone company can increase its monthly basic local rate by $1.25 each year, and the monthly price of basic Caller ID by 50 cents each year. Lifeline customers are exempt from these increases.

“Customers should be able to purchase basic local service at a reasonable price, especially since choices are not available for a dial tone service that comes without any bells and whistles,” said Migden-Ostrander.

Over the OCC’s objections, the PUCO, through a prior decision, granted Cincinnati Bell pricing flexibility for its two largest exchanges, Cincinnati and Hamilton in November 2006. For two consecutive years, the company has raised its monthly price of basic local service by the maximum of $1.25, for a total increase of $2.50.

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 Web site at www.pickocc.org.