The New York Public Service Commission (PSC) has approved comprehensive rate and service tariffs enabling AT&T Communications of New York, Inc. (AT&T) and Frontier Communications of Rochester, Inc. (Frontier) to provide local telephone services in the Rochester, NY, service area. The PSC expects to approve a third set of tariffs for Time Warner AxS of Rochester, L.P. early this year. The new tariffs will allow telephone customers in the Rochester area to choose between the three new market entrants and the existing local carrier, Rochester Telephone Corp. The new tariffs come just over two months after the PSC approved its ground-breaking open market plan for Rochester Telephone, which included a seven-year incentive rate plan, a rate cap, and a $21-million rate reduction. The plan split the local carrier into three corporate entities: a holding company (R-HC); a regulated local carrier, R-Net; and a competitive reseller, Frontier.
According to the PSC, residential rates approved for Time-Warner and AT&T will either equal or undercut Rochester's rates for existing services, and the three new local carriers will have flexibility to change prices to respond to competitive changes. A PSC spokesman described Frontier's rates as "very similar" to those currently approved for R-Net. Re Frontier Communication of Rochester, Inc., Case 94C0531, Dec. 30, 1994 (N.Y.P.S.C.). Re AT&T Communication of New York, Inc., Case 94C1015, Dec. 30, 1995 (N.Y.P.S.C.).
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