Consumer Group Seeks Action Against 2 Phone Companies

A San Diego consumer group accused two telephone companies of illegally selling Californians exorbitantly priced local phone service without directory assistance and other standard features required by state law. The two firms, Smoke Signal Communications and Tel-West Communications, charge customers monthly fees of $53 and $40, respectively, for basic service for which Pacific Bell charges about $11 a month, according to the Utility Consumers’ Action Network. On Wednesday, UCAN filed formal complaints asking the state Public Utilities Commission to investigate the companies, revoke their licenses, freeze assets and order restitution to customers. Smoke Signal is run by Houston-based Chouchtaw Indian Communications, and Tel-West is based in Seattle. Executives from the two companies were not available for comment. Both companies advertise primarily to low-income and Latino immigrant communities and provide service without credit checks or a security deposit. The phone service is “prepaid,” so customers must pay for the service in advance each month at designated check-cashing stores, according to UCAN. Neither company offers the state-mandated “universal lifeline” phone service, a discounted plan that must be described to every customer and made available to low-income customers who qualify, UCAN said.