UCAN agrees with other consumer groups that the lengthy AT&T contract received by most residential customers was a silent alarm announcing price increases were coming and that we should be prepared for a raise in basic local telephone service. Well, Thursday on 9/18/08, the California Public Utilities Commission (CPUC) approved price hikes of up to $3.25 per month on land line phones for the upcoming year through 2010. 

The only good part of the entire deregulation mess is that the CPUC kept a cap on local land line rates for 2+ years.  The major 4 phone companies were sure they would be granted total deregulation just like they've received everything requested over the past few years.  Consumer groups like UCAN aren't happy because they've constantly opposed every rate increase.  The dregulation of price is being sought in many other states as well. Just like when AT&T went to each state and the FCC to get support for recreating the Baby Bell monopoly, it is working just as hard to undo any price controls to charge you as much as it wants without any regulation.  We all have seen how that's worked for Wall Street!!!

After January 2011, Verizon, AT&T and the smller phone companies in California will be allowed to charge whatever they want for basic local service in most parts of the state, according to the CPUC.