HomeMy WebLinkAbout04/20/1999, - 1818COmmumC,3000s
March 12, 19990
Allen Settle "
Mayor
990 Palm St
San Luis Obispo CA 93401-3249
Dear Allen:
With little fanfare,SBC/Pac Bell is trying to gain authority to charge up to $1.10 for the
"411"calls it now charges 25 cents for. This outrageous 300+%price increase will not
only significantly impact your costs,it will place a heavy burden on many of your
constituents —especially seniors and the handicapped --for a vital service over which
SBC/Pac Bell exercises a virtual monopoly.
Afinal decision about the rate increase won't occur until late April or early May.so you
still have time to formally register your opposition to it.
Even though SBC/Pac Bell is attempting to keep a low profile on this issue, it already is
generating a groundswell of opposition,with more than 4,000 consumers contacting the
California Public Utilities Commission -- the 10th highest number of complaints of any
issue ever before the commission. Consider the following:
• Most major newspapers in the state have editorialized against this increase and the
surreptitious manner in which SBC/Pac Bell has tried to get its way. The
monopoly originally issued a notice in consumers' bills saying it wanted to raise
411 rates to 50 cents,not mentioning that at the same time they had filed with the
PUC for the authority to charge $1.10. It so outraged the PUC that they ordered
the company to print new notices included as bill inserts.
• The Los Angeles County Board of Supervisors has unanimously voted to file a
brief with the PUC opposing this increase and has termed the increase a
"gouging"of consumers.
• The late Los Angeles County Sheriff Sherman Block submitted a letter noting the
severe impact this increase will have on law enforcement,a heavy user of 411
service in emergency matters. The Sheriff also objected to SBC/Pac Bell's efforts
to raise the emergency interrupt charge from $1 to $5 and the effect this would
have on emergency police situations.
RECEIVED
� MAR 2 3 1999
P.O. Box 512466 • Los Angeles, California 90051 • 800-383-7384 • www.ph rSLA t Fill.
If SBC/Pac Bell gets its way, California would have the highest 411 rates in the country.
And even though SBC/Pac Bell says it "only" wants to double rates to 50 cents (and cut
the number of free calls from five to three), there will be absolutely nothing to stop them
from charging up to $1.10. The monopoly wouldn't be asking for permission to raise
prices to $1.10 per call if it didn't plan on charging that!
Fundamentally, it's just not fair to allow a monopoly utility to get away with this kind of
price increase. It will affect your budget and your constituents' pocketbooks.
We encourage you to raise this issue by using the enclosed resolution and sending it
to the California PUC. They need to hear from local governments about how this will
affect your budgets and your constituents.
The time for action is soon. The PUC will be issuing its final decision on SBC/Pac Bell's
request by early May. so the sooner you pass this resolution, the better.
If you have any questions about this or any other telecom-related issue, please feel free to
contact me at (800) 383-7384. Thank you for your consideration of this matter.
Sincerely,
Anna Evashko
President
P.S. Numerous groups and cities have already gone on record as formally opposing
this 300+% increase in 411 rates. Please act today and add your city to the list. If
the PUC hears from enough local governments before May, it may save us from
having the highest 411 costs in the whole country!
P.P.S. Please fax me a copy of your completed resolution at 619-226-2165.
C5-3
RESOLUTION NO. (1999 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
OPPOSING PACIFIC BELL'S 411 RATE INCREASE
WHEREAS, SBC/Pac Bell has applied to the California Public Utilities Commission for
permission to increase the charge of a local directory assistance call from $0.25 up to $1.10.
This is a 340% increase. In addition, SBC/Pac Bell is asking to raise the rate of an emergency
break-through call from $1.00 to $5.00; and
WHEREAS, public safety agencies such as police, fire and paramedic services frequently
use local directory assistance and emergency interrupt services, and this increase would create a
tremendous financial burden for these government agencies, and
WHEREAS, the affect of these increases would dramatically impact the elderly, those
with physical disabilities, and low income households; and only those with physical disabilities
that file an exemption with SBC/Pac Bell would be exempted; and
WHEREAS, SBC/Pac Bell controls over 97% of the local service markets it serves; and
WHEREAS, unlike long distance information services, by virtue of SBC/Pac Bell's
monopoly there is no competitor that has as accurate and up-to-date information as SBC/Pac
Bell, and
WHEREAS, most consumers associate local directory assistance with the numbers 411,
not any other dial around number.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that the City strongly opposes SBC/Pac Bell's application for these excessive rate increases. We
furthermore encourage SBC/Pac Bell to withdraw its application until a time when consumers
have a competitive choice for their local services:
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
C5-4
Resolution'No: (1999 Series)
Page Two
I i
the foregoing resolution was adopted.ttiis day of ' 1999.
Mayor.Allen Settle ---
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
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C5-5
Sample Resolution Opposing Pacific Bell's 411 Rate Increase
WHEREAS, SBC/Pac Bell has applied to the California Public Utilities
Commission for permission to increase the charge of a local directory assistance
call from $0.25 up to a $1.10. This is a 340% increase. In addition SBC/Pac Bell
is asking to raise the rate of an emergency break through call from $1.00 to
$5.00, and
WHEREAS, public safety agencies such as police, fire and paramedic services
frequently use local directory assistance and emergency interrupt services, this
would create a tremendous financial burden for these government agencies, and
WHEREAS, the affect of these increases would dramatically impact the elderly,
those with physical disabilities and low income households and only those with
physical disabilities that file an exemption with SBC/Pac Bell would be exempted,
and
WHEREAS, SBC/Pac Bell controls over 97% of the local service markets it
serves, and
WHEREAS, unlike long distance information services, by virtue of SBC/Pac
Bell's monopoly there is no competitor that has as accurate and up-to-date
information as SBC/Pac Bell, and
WHEREAS, most consumers associate local directory assistance with the
numbers 411 not any other dial around number, and
THEREFORE be it resolved that the strongly opposes SBC/Pac
Bell's application for these excessive rate increases. We furthermore encourage
SBC/Pac Bell to withdraw its application until a time when consumers have a
competitive choice for their local services.
Please fax a copy of your completed resolution to Californians
for Telecommunications Choice at 619-226-2165.
C5-6
lq
August 22, 1998Monopoly PricinL5
Calling 411 could cost four times as much
InMay, Pacific Bell cus- 100 percent increase in 411 cbarges.
tomers received a PacBell says its request to bike direc-
friendly notice from the tory assistance charges eventually to
phone company: The $1.10 is not out of line, since its last
number of free 411 in- increase was way back in 1984. More-
all would be reduced from over, the regional phone monopoly
the present five a month to three. And says, the 25 cents it now charges for
the charge for directory assistance calls directory assistance is below the cost of
would double, from 25 cents to 50 providing the service. But it's not like
cents. PacBell is going broke providing below-
If that were not enough to stir up cost 411 service.In the first six months
PacBell's customers—the state Public of this year, it reported net income of
Utilities Commission received nearly $573 moon.
3,000 irate letters and e-mails — now State regulators should not force Pac-
comes word that PacBell is asking regu- Bell to provide any service at a price
lators for permission to bludgeon its below cost. The regional phone compa-
captive phone customers with a whop- ny says its 411 service costs more than
ping 440 percent increase in 411 25 cents a call. But it didn't say that it
charges. costs the 50 cents it told its customers
PacBell assures its customers its re- they would be charged.
quest to the PUC is merely a formality, So the cost to PacBell of providing
that it has no intention of jacking up directory assistance has to be some-
directory assistance charges from 25 where between 25 cents and 50 cents a
cents a call to $1.10. For now, at least, call. And that is the amount the PUC
the baby bell is satisfied with a mere ought to approve—and no more.
PacBell Dials a Wrong Number
PacBell information,please.Question:Is it 50 the current five.There was no mention of the
cents or $1.10 that consumers will pay every $1.10. PacBell made the disclosure only in an
time they dial 411 for directory assistance? exhibit attached to its application to the PUG
%C_Z2n 0irqu The state's largest phone company has told its The pricing has drawn objections from Los
G� customers 50 cents, but it has asked the state Angeles County; the PUC's independent con-
IItIlI— ��1'IhUnti. Public Utilities Commission for permission to sumer advocacy arm, the Office of Ratepayer
establish a maximum allowable charge of up to Advocates; and Toward Utility Reform Net-
August 21, 1998 $1.10 a call. It's a sneaky work, a San Francisco con-
move that is drawing the jus- sumer group. Boosting the
tifiable wrath of telephone The phone company told indignation is PacBell's
users. customers it would charge 50 admission that its cost per 411
At this point, who still cents for 411 calls, but it has can is only about 33 cents-
remembers
ents
remembers that telephone establish a But what's most disturbing
asked the PUC to es
deregulation was supposed.to maximum allowable charge is that consumers are being
bring down rates. Angry 8 asked to pay more even as
customers have been com= of up to$1.10 a call. many users complain that the
plaining about the PacBell quality and accuracy of direc-
move to the PUC, which has tory information overall seem
scheduled public hearings for November. to be declining.
Meanwhile, state regulators instructed Pacific PacBell claims its accuracy rate on local 411 is
Bell to send new billing notices to explain the high, but the number of directory assistance
controversial request to customers. service centers is being reduced, accordi.T
The phone company notified customers in the ratepayer advocacy group TURN.
May of its plan to double its current directory computers are increasin 1 uued instead of
assistance charge of 25 cents and to reduce the human operators Paeil to justify an
number of free 411 calls to three a month from increase to 50 cents,let a n the$1.10 ceilia¢.
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