Washington Resolves Pay Phone Price Squeeze

Fortnightly Magazine - June 15 1995
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Recharge the Economy with Renewable Energy Tax Credits
The Washington Utilities and Transportation Commission (UTC) has ordered

U S West Communications, Inc., a local exchange carrier (LEC) to reduce the price of "essential monopoly" services it provides its payphone competitors to cure a price squeeze in the public payphone services market. Using an "imputation test," the UTC found that the cost of a local telephone call was greater than the LEC's current levy of $0.25 at its public pay stations. It concluded that to give competitive payphone providers a fair chance in the market, U S West must reduce the rate it charges for public-access line service to the existing rate for a simple business line. The LEC was also required to reduce the monthly recurring rate for answer supervision line side from $3.95 to $1.00. Northwest Payphone Association et al. v. U S West Communications, Inc., Docket No. UT-920174, Mar. 17, 1995 (Wash.U.T.C.).


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