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AT&T to raise landline phone service by more than 20 percent

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  • AT&T to raise landline phone service by more than 20 percent

    I have two daughters who each own a condominium. Neither has a landline phone. They can afford one if they wanted, but why waste the money.

    Both use their cell phones instead. "But consumer advocates questioned both the need and the timing of the price increase. They noted that it comes amid a recession, when many consumers are struggling financially.

    "There's nothing in the economy or the cost of providing phone service that would justify a 22 percent increase," said Harvey Rosenfield, founder of Consumer Watchdog.

    The price hikes were approved last year by the PUC. Determining that the market was competitive, the commission decided to lift nearly all regulation on basic phone rates after a two-year transition period."

    Note that it was government, not the market place that approved the price increase.

    In fact, AT&T makes more money from cell phones--so it makes sense to use economics to get rid of landlines and to force folks into a cell phone only existence.

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