CPUC Sells Out Captive Phone Customers; Shareholders Will Earn Millions.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 18, 1999--

TURN, California's leading utility consumer advocacy organization, will demand rehearing of today's CPUC decision granting Pacific Bell an almost 100% increase in directory assistance rates.

The increase will net Pac Bell over $100 million a year at the expense of the state's most vulnerable consumers, who, despite their prodigious protests, will be forced to pay $.46 per call for directory assistance (the current price is $.25). Adding insult to injury, the decision effectively raises the cost of basic service statewide by reducing the number of uncharged directory assistance calls included in basic residential service and totally eliminating uncharged calls for small businesses.

TURN's senior telecommunications attorney, Tom Long, said the decision completely ignored the facts in the case. "Pacific Bell has been laying off directory assistance employees, consolidating its directory assistance service centers and installing new equipment, all of which makes it cheaper to provide the service. There is no justification for making consumers pay more when it's costing the company less."

Among the 41,000 consumers who protested the increase were small businesses, nonprofit service providers, seniors, and other consumers on low or fixed incomes. "The Commission majority appears more concerned with the financial well being of Pac Bell's shareholders than with the most vulnerable Californians, most of whom still have no choice but to use Pac Bell's directory assistance service, regardless of how inflated prices are," Long said. "On rehearing, we hope the Commission gives consumers as much consideration as they have given to Pac Bell's shareholders today."