Wisconsin Public Service Commission lifts SBC local price cap
On Monday the Wisconsin Public Service Commission voted unanimously to lift a price cap imposed on SBC Communications for basic local residential telephone service.
SBC serves mostly urban and suburban areas in the state, and basic local measured service is currently capped at $8.20 per month, plus $0.04 per local call, up to 150 calls per month.
Today’s action (PDF) would raise the amount SBC could charge in most urban and suburban areas in Wisconsin by $2.50 per year for two years, and lift the cap entirely after two years.
The areas affected by the order are Appleton, Beloit, Eau Claire, Fond du Lac, Green Bay,
Janesville, Kenosha, Madison, Manitowoc, Menomonee Falls, Milwaukee, Neenah-Menasha,
Oshkosh, Racine, Sheboygan, Stevens Point and Waukesha. Other areas are unaffected and price caps will remain in place.
The PSC will release a written order in November with details of the plan including the date it will take effect.
“The time is right to take steps to lift the restrictions on SBC residential basic local exchange service while still protecting consumers,” said PSC chairperson Daniel Ebert.
“The Commission has historically worked towards competition in the telecommunications market to provide more choices to consumers and to allow the marketplace to keep prices competitive and Wisconsin consumers have benefited,” Ebert said. “In today’s telecommunications market we see competition from other telephone companies, from new telecommunications technologies, from cellular service and from cable companies.”
However, the Citizens Utility Board, a non-profit organization which advocates for consumer protection in utility services such as phone, electricity and natural gas, disagreed.
“Today’s decision by the PSC will lead to higher rates for phone service for many SBC customers,” said Charlie Higley, CUB executive director. “SBC can now drastically raise the price for phone service without fear of losing customers to competitors. The decision by the PSC will help SBC shareholders at the expense of SBC customers.”
CUB had argued before the PSC that sufficient competition did not exist, as only about one-quarter of customers in SBC’s territory had chosen another provider, and alternatives such as cellular phones and VoIP were still too expensive to be considered competitive to basic local service.
