N.Y. PSC approved rate restructuring plan for Citizens Telecom th...
N.Y. PSC approved rate restructuring plan for Citizens Telecom that will make rates uniform in all of carrier’s service areas across state by 2005. New rate structure will replace hodgepodge of rates from company’s acquisitions of small telcos over…
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last 20 years that led to situations where customers were charged substantially different rates for similar services without cost justification for difference. Plan adopted Tues. provides for phasing in new rates over 4 years, starting in 2002, with annual increases limited to $1 monthly for residential customers and $3 per line monthly for business customers. Customers receiving rate cuts under restructuring will see them implemented this month. New rates also will cover Citizens’ revenue losses from expiration in near future of long-term intercarrier compensation agreements with Verizon for extended local calling. Plan also eliminates Citizens’ rural zone charges to customers beyond base rate areas of its local exchanges and makes Citizens’ local calling areas similar in size to those of Verizon. Citizens is 4th largest incumbent in N.Y., with 307,000 lines in 126 exchanges scattered across state.