Business Services Industry

California Regulators Cut Lease Prices of SBC Pacific Bell's Phone Network.

Knight Ridder/Tribune Business News, May, 2002

By Clint Swett, The Sacramento Bee, Calif. Knight Ridder/Tribune Business News

May 17--State regulators Thursday drastically lowered the prices that phone companies pay to lease portions of SBC Pacific Bell's telephone network, paving the way for more competition in California's residential telephone market.

The California Public Utilities Commission voted 3-2 to slash by 43.5 percent the price that companies like AT&T and MCI pay to lease pieces of SBC Pac Bell's telephone system.

Both AT&T and MCI said the lower rates will allow them to compete with SBC Pacific Bell for more than 11 million residential customers in California. SBC Pacific Bell currently controls about 90 percent of the phone market in the territories it serves.

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