Pacific Bell and Greenlining Coalition Announce New Plan to Increase Phone Service Access; New Factors Found For Lower Phone Penetration Among California Minority And Low Income Groups

Business Wire, Feb 8, 1996

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 1996--Information released by a Pacific Bell/Greenlining Coalition partnership challenges the myth that the cost of basic service is the biggest reason for lower phone penetration among minority and low income consumers. In fact, service retention could be the primary issue. The partnership, established July 1994 as the result of an historic agreement, is committed to good faith efforts to increase phone penetration rates in California.

Since most non-customers were found to have had phone service recently but had difficulty retaining the service, the partnership has focused on the following factors:

- Non customers are very mobile. Many low income individuals and families move frequently and have difficulty paying multiple installation charges. - Inability to control long distance phone calls. In minority and low income households, there are a number of individuals or multiple families all using the same phone. New analysis found it is difficult for telephone subscribers in this situation to control phone use and they are often left to pay large long distance bills for unauthorized calls. - Payment priority issues. When faced with the choice between other livelihood needs or paying the phone bill, the competing need often comes first for non-customers. Phone service, compared to other urgent needs, is often a lower priority.

Today's Announcement Continues the Era of Cooperation

In a breakthrough announced jointly today, the Pacific Bell/Greenlining Coalition partnership has agreed on strategies to address the problem.

Services and options have been identified to deal directly with service retention. These include reduced installation rates, payment arrangements, and toll restrictions. Trials of these services in the target communities have been successful.

"We've found that a large percentage of people who do not have phone service, want service. It is not the cost of Lifeline installation or basic service rates that prevents them from having it. Rather, service retention is a primary factor. Agreement on what the factors really are is a big step toward coming up with solutions," according to John Gamboa, Executive Director of the Greenlining Institute. "Through analysis and outreach trials in Oakland, the partnership has identified new ways to approach the issues."

A toll restriction service approved by the California Public Utilities Commission in December, makes it possible to block most unwanted incoming collect calls and outgoing long distance and toll calls from a customer's phone. In the first month, over 10,000 customers subscribed to the new service to better manage phone usage and to help retain service.

To deal with payment issues, Pacific Bell has proposed a plan to improve customer service processes, making it easier for customers to establish good credit history. In addition, an early bill could serve as notification to any customer, preventing charges from growing abnormally high.

New Outreach Strategies and Options Signal Dynamic Approach to Problem

This year, Universal Lifeline Telephone Service (ULTS) and service retention information education using community outreach will be increased by at least 50% for Asian-American and Hispanic communities and 100% for African American communities.

"In 1995, we saw an 8% increase in ULTS customers in the state, and we believe that is, in part, due to our efforts championed by the Greenlining Coalition," said Paul Turner, Pacific Bell ULTS Product Manager.

Pacific Bell's voice-mail products, Quick Dial Tone and Prepaid Phone Cards were also identified as additional solutions to phone retention issues.

Recent Announcements by Pacific Bell also Applauded

A trial Pacific Bell Calling Center was recently set up in Huntington Park to meet the needs of coin phone users. The Center allows people access to a clean, well-lit place from which they can make phone calls on coin operated telephones. If successful, information from this site will be used to improve phone service in other communities.

Pacific Bell is also making it easier to pay Pacific Bell bills. In addition to electronic bill payment and paying by mail, Pacific Bell is working to increase the number of Authorized Payment Locations across the state, such as, local merchants and community organizations.

Pacific Bell is a subsidiary of Pacific Telesis Group, a diversified telecommunications corporation based in San Francisco.

CONTACT: Pacific Bell

Beverly Butler, 415/542-9468