California Public Utilities Commission Action Threatens California Consumers Wholesale Rates Set to Increase 25

California Public Utilities Commission Action Threatens California Consumers Wholesale Rates Set to Increase 25%

SAN FRANCISCO, May 4 /PRNewswire/

Yesterday, an administrative law judge of the California Public Utilities Commission (CPUC) issued draft decisions proposing permanent wholesale rates for SBC's California service territory. Competitive carriers rely on these wholesale rates in order to lease access to the public switched network and provide a choice for local phone service. Judge Dorothy Duda and Commissioner Carl Wood issued draft decisions raising wholesale rates by 20-25% on average. CPUC Commissioners will now review the decision before a final vote.

The following may be attributed to Ken McNeely, President, AT&T California:

"Yesterday's proposals give SBC a 25% rate increase that will kill local phone competition in the state and give SBC what it wants the most -- its monopoly back.

"Even more ominous for consumers, small businesses and jobs and investment in California, is the fact this these proposals will kill the future of facilities-based competition -- something SBC and regulators have long clamored for. The proposals call for an incredible 32+ % increase on the cost of leasing the decades-old copper loop also called the 'last mile' -- a network element that has been paid for many times over by captive ratepayers.

"While policymakers in Sacramento have been struggling to find ways to jump start California's economy, these proposals threaten to derail all the positive progress that's been made in the state's telecom industry."

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.