2 phone rate hikes in 2 years

Utility and phone regulators in California are a lot like those in Kentucky and Ohio - i.e., a rubber stamp for unnecessary rate increases that harm consumers.

Years ago, I noticed an interesting gimmick used by phone and utility firms. Every time they asked for a rate increase, they claimed it was the first in many years, even if the ink was barely dry on their previous rate hike.

This time, however, they know nobody's going to fall for it. So they've just decided to go ahead and ask for an increase and hedge their bets that regulators will approve it - which they did.

In California, AT&T is raising telephone rates by a staggering 22%. This is their second rate hike in only 2 years.

That's nice, because average household incomes also went up by - wait, they didn't.

This after the California Public Utilities Commission deregulated rates almost entirely - despite the lack of competition.

Hey, how's that 1996 Telecommunications Act - which was supposed to increase competition and lower rates - working out? It isn't, and its supporters knew it wouldn't.

Sadly, the merger mania fostered by the '96 telcom law has almost completely reversed the ruling in the '80s that split up the phone industry.

(Source: http://www.mercurynews.com/top-stories/ci_13579916)