Consumer Choice to Disappear

SAN FRANCISCO, Today, the California Public Utilities Commission (CPUC) approved a proposal that will increase wholesale rates for SBC’s California service territory by 20 percent. Competitive carriers rely on these wholesale rates in order to lease access to the public switched network and provide local phone service to consumers and small businesses.

This increase would be in addition to a 15 percent hike proposed by the FCC that will take effect early next year.

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

«Today’s vote is an inexplicable about-face from the pro-competitive actions taken by this Commission just two-and-a-half years ago that spurred investment in the state, provided Californians with new choices for local phone service, and generated hundreds of millions of dollars in savings.

»Today’s action will not help create new jobs or spur investment in the state, but rather, simply signals the end of local phone competition and choice for Californians and higher prices for phone service. As the now uncontested and largest provider of local, long distance, wireless and DSL services in the state, this vote gives SBC the green light to remonopolize telecommunications and provide less service at higher rates."

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.