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Technology / AI and automation

GTE RAISES PAY PHONE RATES IN CALIFORNIA

GTE Corp, following hot on the heels of Bell Atlantic Corp (CI No 3,289), is raising its rates for local calls on public pay phones throughout California to $0.35. GTE says it is the first such rate increase since 1984 when the rates were raised from $0.10 to $0.20. GTE operates more than 40,000 pay phones in California and 120,000 nationwide. The Telecommunications Act of 1996 deregulated the pay-phone business, allowing market-based rates. Prior to October 7 of this year, when the new regulations took effect, state regulatory commissions set pay-phone rates based loosely on the actual cost of providing the service. A telecommunications provider like GTE would have to plead its case for a rate increase to state regulators, who could then decide whether it was justified and, if so, how much the rates could be increased.

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CBR Staff Writer

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