Opinion ID: 2631065
Heading Depth: 1
Heading Rank: 10

Heading: Transitional Limitation on Price Increases in Rural Areas

Text: ¶ 60 The Commission found that it would be in the public interest to impose a five-year transitional limitation period on price increases for basic residential access line service within the rural areas served by SBC. [81] This finding was based in part upon a related finding that rural ILECs in Oklahoma have had this type of pricing flexibility for many years and have not raised prices to an exorbitant level. The Commission also found that rural ILECs were investing in advanced communications services. Appellants argue that there was no evidence to support these findings. We disagree. SBC's economics expert testified as to the price of telephone service in rural areas and reported that rural ILECs were publicizing their investments in internet technology. ¶ 61 Appellants also challenge the Commission's finding that if the existing price of a rural service is less than the service's LRIC, the Commission will not interfere with a price increase even if, as the Order provides, 15% of SBC's subscribers statewide ask the Commission to do so. Appellants assert that this is simply another example of the Commission evading its obligations under the LRIC price standard. We disagree. Not only is this provision not an attempt to evade the LRIC price standard, but its effect is to prevent the public from using the Commission to bloc the gradual adjustment of rural prices toward their LRIC.