Spotlight: How Low Will They Go?

Pacific Bell has proposed lowering rates in the state’s toll-call market by $305 million a year. The move comes as state regulators weigh approval of SBC Communications Inc.’s planned acquisition of Pac Bell parent Pacific Telesis Group. Higher rates on toll calls had subsidized basic phone service until the PUC opened the market to competition in 1995. The PUC required Pac Bell to cut rates to make up for receiving its share of the universal service fund that guarantees phone service to the poor.