Business Services Industry

SBC dials wrong number in quest for rate increase.(Brief Article)

Crain's Chicago Business, September, 2002

Stung by the first pinprick of competition, erstwhile local telephone service monopolist SBC Ameritech is howling for the balm of regulatory intervention. Executives of SBC Ameritech's Texas-based parent, SBC Communications Inc., are trying to put pressure on Illinois regulators to raise the wholesale rates that competing local phone companies pay to use the SBC Ameritech network.

Established by the Illinois Commerce Commission (ICC) less than a year ago, those rates are widely credited with sparking the first real competition in the residential local phone market since Congress deregulated the business in 1996. But the SBC honchos-including mayoral brother and uber-lobbyist William Daley-protest that the wholesale rates force the company to sell network...

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