DATE: Saturday, August 16, 1997             TAG: 9708160244

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY LINDA McNATT, STAFF WRITER 
                                            LENGTH:   85 lines

GTE CUTTING SOME RATES

GTE-South telephone customers in Chesapeake, Suffolk, Virginia Beach and Isle of Wight County could see cheaper phone bills - and, in some instances, extended calling areas - as a result of a recent state order that the company reduce rates across Virginia by $27.4 million.

However, some of GTE-South's 110,000 customers could see basic rates triple for unlimited calling to areas that now are long distance.

Whether the change adds to the total bill or saves consumers money depends on how much calling the customer does outside the exchange.

GTE customers would have several choices:

No change, limiting customers to no-toll calls within their exchange.

Flat rate, which in most cases would increase from an average of $10 a month to about $18 a month.

Calls outside their local exchanges would cost from 2 to 6 cents a minute.

Unlimited access for $35 a month, providing unlimited calls to South Hampton Roads and the Peninsula.

``This really lets people decide,'' said Kathleen A. Cummings, a senior telecommunications specialist with the State Corporation Commission.

GTE has 45 days to file a revised rate system, but Cummings said the company is expected to go along with the SCC's recommended options. Changes in most areas should take effect within six to nine months.

Phone costs for years have plagued residents and businesses in rural areas of Hampton Roads, especially those who live in Isle of Wight, Franklin and the Chuckatuck, Holland and Crittenden areas of Suffolk but work, shop and have friends and relatives in the metropolitan area.

Smithfield resident Randy Philpott, for instance, moved his business from Isle of Wight to Newport News after his phone bill reached $1,000 a month.

Isle of Wight citizens and officials have negotiated rate changes for six years with GTE and have petitioned state legislators for telephone changes. Two years ago, the county and GTE reached an agreement that would have extended calling into Hampton Roads while increasing most local phone bills by less than $5, but it was never implemented.

The agreement was subject to approval of the SCC, the state agency charged with regulating utility costs. Instead, it ordered the rate revisions last week.

In some cases, the SCC proposal could triple basic rates. If a customer chose unlimited calling to South Hampton Roads and the Peninsula, for instance, basic service in some areas could go from about $7 a month (plus local long-distance rates) to $35.

The complaints came because everybody was charged local long-distance rates, resulting in high phone bills for people who called other cities frequently.

Some Isle of Wight customers can call several states away at less expense than they can call from Smithfield to Windsor, towns within the same county.

Edward E. Harrigan, a retired Navy chief petty officer who moved to Smithfield in 1991 and started petition drives for extended area calling in that area, said he's pleased by the SCC's action.

``It should reduce my phone bill by $75 to $100 a month,'' Harrigan said. ``I've had a war on, and I'm pleased with whatever we can get.''

Alan Monette, an Isle of Wight businessman who has led the county effort, was more cautious.

``I'm glad we got something, but I'm not sure it's fair to Isle of Wight . for about $17 a month,'' Monette said.

Constance H. Rhodes, executive director of the Isle of Wight/Smithfield/Windsor Chamber of Commerce, said, ``It's not what we were hoping for. Overall, we're not happy with the decision'' since GTE had agreed on the cheaper rate.

One problem, Cummings said, was that the $27.4 million reduction had to be spread across the state. GTE customers in areas surrounding Richmond, Lynchburg and in Northern Virginia can also expect to see reduced bills.

Those unhappy with the plan may petition the SCC for further consideration, Cummings said.

Cummings said that Bell Atlantic, which serves most of greater Hampton Roads, also is working on a reciprocal agreement to allow customers in Norfolk, Virginia Beach and other cities to call into GTE areas at a reduced rate.

Lacy Yeatts, manager of exterior communications for GTE, said the company will file implementation schedules at the same time it files its rate revision schedule.

``We're very anxious to get these benefits out to our customers,'' Yeatts said. ILLUSTRATION: VP GRAPHIC

CALLING OPTIONS

[For a copy of the graphic, see microfilm for this date.]

SOURCE: State Corporation Commission

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