Verizon, AT&T jack up rates for features
Published: Jan. 28, 2008 at 12:17 PM
NEW YORK, Jan. 28 (UPI) -- Verizon and AT&T have raised prices of special features, such as call forwarding, as high as 300 percent in some states, a report Monday says.
The companies argue that competitors, such as cable TV and Internet-base phone services, are forcing them to raise prices. A dozen states have allowed them to do so, a USA Today report says.
"This is not a good story for consumers in Ohio," said Janine Migden-Ostrander of the Ohio Consumers' Counsel, which represents consumers before state regulators.
Verizon spokesman Eric Rabe said customers are free to choose other companies, but Mindy Spatt of The Utility Reform Network said the size and power of the phone giants undermines that ideal.
With strong competition in open markets, "prices go down, not up," she said.
Phone companies are now bundling services, such as call waiting, anonymous call rejection and automatic call backs. These bundles can cost more than $100 a month, the report says.
Consumer advocates contend that bundling impacts the elderly and low-income families, the hardest. Those are the "less-savvy consumers, who don't have the wherewithal or time to shop for better prices," said Chris Murray of Consumers Union, a watchdog group.
The companies argue that competitors, such as cable TV and Internet-base phone services, are forcing them to raise prices. A dozen states have allowed them to do so, a USA Today report says.
"This is not a good story for consumers in Ohio," said Janine Migden-Ostrander of the Ohio Consumers' Counsel, which represents consumers before state regulators.
Verizon spokesman Eric Rabe said customers are free to choose other companies, but Mindy Spatt of The Utility Reform Network said the size and power of the phone giants undermines that ideal.
With strong competition in open markets, "prices go down, not up," she said.
Phone companies are now bundling services, such as call waiting, anonymous call rejection and automatic call backs. These bundles can cost more than $100 a month, the report says.
Consumer advocates contend that bundling impacts the elderly and low-income families, the hardest. Those are the "less-savvy consumers, who don't have the wherewithal or time to shop for better prices," said Chris Murray of Consumers Union, a watchdog group.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
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