PRC Approves Cheaper In-State Distance Calls
Posted on: Wednesday, 2 November 2005, 12:01 CST
By ROSALIE RAYBURN Journal Staff Writer
SANTA FE -- State regulators on Tuesday met a state Legislature deadline for approving a rule that allows phone companies to raise basic phone rates in return for lowering the cost of making in- state long-distance calls.
Qwest Communications' business and residential customers will see their bills increase by $1.68 per month, or about $20 a year, beginning in April. Customers of rural phone companies, who typically pay more for in-state long-distance calls, will benefit when those costs drop. But they will probably see heftier increases on their basic rates, said Public Regulation Commissioner Jason Marks.
Marks and commissioners David King, Lynda Lovejoy and Ben Lujan voted to pass the rule. Commissioner E. Shirley Baca was absent.
A law passed earlier this year required the PRC to approve the rule by Nov. 1. The intent is to boost economic development in rural areas.
Beginning in April, phone companies must lower fees they charge to carry in-state long-distance calls to the same level as those they charge for state-to-state calls. Currently, Qwest charges about 14 cents per minute to carry in-state long-distance calls; some rural phone companies charge nearly 40 cents per minute.
Phone companies charge between half a cent and 3 cents per minute to carry state-to-state calls over their networks.
The rule allows phone companies to adjust their basic business and residential rates to make up for revenue they lose from reducing longdistance rates to an average of about $36.05 per month for business lines and about $15.18 for residential. Phone companies have the option to implement the total increase in April or phase it in over five years.
The rule also gives the PRC authority to order a review of the new system in mid-2007 to ensure it is benefiting consumers.
Source: Albuquerque Journal
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