Phone Companies May Soon Offer Unlimited Calling

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The New York Sun

ALBANY – Telephone companies could offer a new package of basic services for up to three times more than customers pay in some parts of New York state under new regulations that may be enacted today.


The state’s Public Service Commission will review whether to allow phone companies to charge up to $24.95 for a basic service package that would include unlimited local calls.


Such calls are not included in the basic access rate of $8.61 for Manhattan residents, which only allows customers to make 911 or long distance calls.


Carriers would be able to raise the basic rates to $24.95 over a three-year period. “That doesn’t mean they would. If they wanted to price it lower, they could,” a PSC spokesman, Dave Flanagan, said. The proposed increase is part of the commission’s review of regulations in the telecommunications industry, which has been transformed in recent years by growing competition from cable companies and wireless providers.


“We’re going to price according to what the market dictates,” said Cliff Lee, a spokesman for Verizon, one of the dominant providers in the state.


He said increasing competition is forcing phone companies to move toward deals that bundle services like basic access and local unlimited calls.


Companies also still have the option to provide the basic access service, although they would not be required to do so. Higher basic rates would make it harder for the poor and elderly to get basic phone service, state Assemblyman Richard Brodsky, a critic of proposed increase, said.


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