• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Public Utilities Commission of Ohio Decision Prompts AT&T to End Two Popular Local Service Plans and Raise Rates

Posted on: Wednesday, 19 May 2004, 06:00 CDT

COLUMBUS, Ohio, May 19 /PRNewswire/ -- AT&T said today it will stop offering its popular Call Plan Unlimited and Unlimited Plus local service plans to new Ohio local residential customers and raise rates, effective today, for those customers already enrolled in the plans.

These actions come as the result of a controversial decision by the Public Utilities Commission of Ohio (PUCO), which on March 11th issued an order substantially increasing SBC Ohio's wholesale rates known as unbundled network elements or UNEs. The PUCO, without even the benefit of any hearings, raised by about 16 percent the rates competitors must pay to lease parts of SBC's local network and then resell as services to Ohio residential customers.

The PUCO's order means that SBC Ohio's wholesale price -- now the highest in SBC Midwest territory -- is higher than the retail prices it charges its own customers.

As a result, starting today, AT&T raised the monthly rate for existing customers on these two local plans by $3.75 a line. Customers who have the Unlimited Plus local calling plan will now pay $18.75 per month for the service. Customers on the Unlimited local calling plan will now pay $27.70 per month for the service. Additionally, the company will stop offering these two plans to new residential customers or to existing customers who move. Customers were notified of these changes in a postcard mailed earlier this month.

These changes will not affect Ohio consumers who are on any of AT&T's other local service plans, including its popular One Rate USA(SM), AT&T's bundled calling plan, which is priced at $48.95 per month.

"We continue to be very disappointed with the Commission's order," said Mike Tye, AT&T regional vice president of Law and Government Affairs. "This large increase in wholesale charges to competitive carriers is unwarranted and a devastating blow to the development of local phone competition in the state. The PUCO's order is bad news not just for a substantial portion of our own customers but for Ohio consumers overall, who were just beginning to enjoy the benefits of local phone competition."

Prior to this decision, AT&T had been offering a full array of competitive local service offers to Ohio consumers since June 2002.

About AT&T

For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.

AT&T 'Safe Harbor'

The foregoing contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.

(Logo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT )

Photo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT

AT&T

CONTACT: Mike Pruyn of AT&T, office +1-312-230-4894, wireless,+1-312-953-1157, mpruyn@att.com

Web site: http://www.att.com/

More News in this Category