The commission is nearing completion of its review of Pacific Bell's application to begin offering long-distance service within its local market. The review hinges on whether Pacific Bell's local market is open to competition as required under the Telecommunications Act of 1996. The rates, which must be cost-based, are set by the commission.
Carriers can request the commission to review the pricing of up to two elements annually.
If Pacific Bell lowers its rates to an appropriate level, Worldcom will be in the market. We will be an aggressive provider of residential service. Since then, they say prices for switching have tumbled. They point to the prices that Pacific Bell's parent SBC Communications charges in Texas to show rates are higher than they should be here. The carriers contend the result is that overall wholesale prices exceed the retail prices charged to residential customers, thus making it impossible for carriers to compete profitably against Pacific Bell.