NYNEX Opposes Proposal to Hike Local Phone Rates

In a recent filing with the Federal Communications Commission, several of the regional bell companies and the United States Telephone Association proposed a slight increase in local phone rates to offset changes in the Universal Service subsidy system. NYNEX was the only local exchange carrier to oppose local telephone rate increases.

The Washington Post broke the story on May 7, which was followed by additional regional and national media coverage.

In a statement issued by NYNEX, Thomas Tauke, executive vice president government affairs for NYNEX said:

"As stated in today's Washington Post, NYNEX is 'categorically against' local telephone rate increases. NYNEX has worked out many state regulatory agreements that cap local phone rates, in some cases for up to seven years.

"NYNEX believes that the Telecommunications Act does not require local rates to go up. In fact, we believe that the increased competition in the local exchange market which the Act is fostering will create pressure to reduce local telephone bills."

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