The Big 4 incumbent telcos in Cal. generally supported a PUC prop...

the plan and cited a host of shortcomings. PUC Comr. Rachelle Chong last month proposed a system for AT&T, Verizon, Frontier and SureWest that would deregulate retail rates for basic, optional and discretionary services; any service provided as part of a bundle, promotions; anything introduced after the plan’s effective date; and any residential or business service provided under a customer-specific service contract. Rates for Lifeline and other services subsidized by universal service funds would be frozen, regardless of whether they are included in bundles. The big incumbents covered by Case R-05-04-005 applauded most of the plan, but AT&T and Verizon objected to the rate freeze on subsidized services. They said this provision conflicts with the overall deregulatory policy, will have unintended adverse consequences for Lifeline customers and are unjustified by the facts of competition. Competitors and consumer groups said the proposal deregulates too much, too soon. They said competition isn’t evenly distributed across the service territories of the 4 big incumbents, and they still enjoy a de facto monopoly in many suburbs, small towns and rural areas. Some opponents called for an administrative law judge to review where the big companies retain landline market power, and also to assess their market power in wireless services since the Chong proposal relies in part on the competitive threat to incumbents posed by wireless carriers. Other opponents cited provisions in the proposal they said would put competitive carriers under more burdensome regulatory administration requirements than the incumbents, defeating the whole idea of a uniform framework for all carriers.