AT&T raising rates [Telecom]

Nov 25, 2010 0 Replies

At the end of Dave Lazarus' current column in the Los Angeles Times:


AT&T raising rates



Speaking of services that were once free, AT&T is informing customers that the charge for directory assistance will rise Jan. 3 to $1.79 per call from $1.50 ? a nearly 20% increase.



The telecom giant also says its monthly rate for basic residential phone service will rise for most customers to $19.95 from $16.45.



That 21% increase follows a 22% jump in the cost of basic phone service at the beginning of 2010 and a 23% rise the year before.



This is way ahead of the inflation rate, which has remained below 3% for the last couple of years.



"Our rates were held down by regulators for a long time," said Lane Kasselman, an AT&T spokesman. "So now we're playing catch-up. We're staying competitive with the rest of the market."



A spokesman for Verizon said the company has no plans to boost either its $1.25 charge for directory assistance or its $20.91 monthly charge for basic residential phone service.



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