What restrictions are there on rates charged by SBC and Verizon?
AT&T and Verizon are governed by “price regulation.” Telecommunications utility price regulation is an optional method of regulation set forth in Wis. Stat. 196.196 established by 1993 Wisconsin Act 496, whereby the average prices charged to primary residential and small business (1-3 lines) customers for telephone lines, local call charges, extended community calling to some neighboring communities, and the connection charges for establishing service are limited by a formula based on inflation, as adjusted for a productivity offset, and incentives and penalties for infrastructure investment and service quality performance. This formula has resulted in a relatively small rate increases and decreases. For AT&T, price regulation restrictions have been removed for all small business (1-3 lines) telephone lines, as well as the following services in AT&T’s 17 largest exchange areas: primary residential telephone lines, local call charges, extended community calling to some neighboring commu
