THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, June 10, 1995 TAG: 9506100263
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Medium: 60 lines
Virginians would have a choice of local telephone companies by 1996 under rules proposed Friday by the State Corporation Commission.
In response, GTE, the state's second-largest local phone company, asked the SCC on Friday for permission to substantially restructure its rates and service.
GTE's restructuring would vastly expand the calling area of its Hampton Roads' phone customers. But residential customers and some business customers would pay more.
GTE customers in Smithfield, southern Virginia Beach, and the Hickory and Great Bridge sections of Chesapeake would be able to place calls free to cities on the Peninsula and to all other Southside locations.
``It is opening up tremendously down there if we are able to get this through the commission,'' said John Wallace, a GTE spokesman.
If approved, the plan would increase basic local telephone rates for residential customers. For example, single-line residential rates would increase to $17.08 in Great Bridge - up from $12.49 - and in Princess Anne - up from $13.45.
Some charges for business customers also would increase.
It is the first basic local rate increase GTE has requested since 1984, GTE said.
GTE also would eliminate fees of about $2 a month for Touch-Tone service. The SCC recently ordered Bell Atlantic, the state's largest local phone service provider, to eliminate charges for the service.
GTE also wants to:
lower access charges to long-distance companies;
eliminate all free calls to directory assistance;
increase directory-assistance charges from 29 cents to 50 cents;
increase pay-phone charges from 25 cents to 35 cents;
lower charges for shorter long-distance calls.
GTE said the rate and service restructuring would produce no new revenue. It would, however, bring its charges into line with costs of providing the service.
``The pricing that we have currently just doesn't represent the marketplace anymore,'' Wallace said.
The SCC could take several months to act on GTE's request.
The General Assembly changed state law to allow competition for local telephone service starting in 1996. The SCC is seeking comments on its proposed rules for that competition. The rules would require minimum levels of service, such as 911 access, directory listings, operator assistance and equal access to long-distance services.
The rules would allow consumers to keep the same phone number if they switch providers while staying in the same location.
Pricing would not be regulated, but the SCC would require financial disclosure by providers. by CNB