‘Touch-Tone’ Charges to End; Some Phone Rates May Rise

The California Public Utilities Commission on Wednesday allowed phone companies in the state to eliminate the itemized charge for touch-tone dialing service, beginning next February.

However, consumer advocates immediately cautioned customers against concluding that touch-tone service--which allows easier access into electronic phone mail and other telephone information services--would be free. In fact, General Telephone customers may see their local phone service charges increase as much as 5% in February.

At issue is the $1 to $1.25 that phone companies operating in the state charge customers each month for touch-tone service.

Under Wednesday’s PUC order, touch-tone service will be included in charges for basic monthly phone service and will no longer be separately billed. However, the order--noting that the state’s phone companies will lose revenue as the extra charges are eliminated--allows the companies to dip into funds previously earmarked for consumer rebates.

The net effect? Pacific Bell customers may not notice the changes immediately because the two actions could cancel each other out. However, customers of General Telephone, which services Southern California residents from Malibu to Laguna Beach, are expected to see their local phone service charges increase 4.74% in February.

“The PUC is letting Pac Bell steal back money that rightfully belongs to ratepayers, while claiming the decision results in ‘free’ touch-tone service. We are outraged,” said Audrie Krause, executive director of the consumer advocate group Toward Utility Rate Normalization (TURN). “General Telephone customers will receive higher phone bills.”