The following table shows the residential telephone rates (R1- flat rate) for the regional Bell operating company (RBOC) in each state and the range of rates for the local exchange carriers (LECs) in each state. Because this information was not available from a secondary source, we relied on the key informant in each state to provide this information. Specifically, the key informant was asked what the rate would be for basic service. Given the complexity of rate structures in some states, the variations in telephone service across the states, and the fact that half of the states do not have a definition for basic service, the rate information should be viewed with caution. Perhaps as more states develop definitions of basic service, it will be possible to develop a better overall picture of the price of basic service in the United States and what customers should expect to pay for it. In the table, states with definitions of basic service are identified by asterisks.
Despite these qualifications, there are a number of interesting patterns in the data. First, in some states the RBOC has a single statewide residential rate, while in others there are a range of rates depending generally on the subscribers geographic location and calling area. The lowest reported rate for a RBOC was in Washington, DC. DC, however, does not have a definition of basic service, has only one LEC, and this is a special rate for low-income households. Of the states with a definition of basic service, Wisconsin has the lowest RBOC rate ($5.40 for measured service) and New York has the highest rate ($22.27). The average basic service rate for states with a definition is $11.95. In four small states there is only one LEC, typically the RBOC (Delaware, DC, Hawaii, Rhode Island). The number of LECs in the remaining states range from 2 (Maryland) to 160 (Iowa). The range in residential rates for LECs in almost all states was greater than the range of rates for the RBOC. Thus there are some LECs in each state with lower rates for residential service than the RBOC and some with higher rates. LECs with the lowest rates typically have very limited calling areas, while LECs with the higher rates are in high cost rural areas. Again, looking at those states with a definition of basic service, the lowest LEC rate was in North Carolina ($2.56) and the highest was in West Virginia ($36.00). The average of the lowest LEC rate for states with a definition was $7.30 and the average of the highest rates was $18.
Note
1. This text taken from Universal Service to Universal Access: The Paradigm Shift in CitizensÍ Use of Telecommunications. Mark Goldstein and Richard Z. Gooding PhD. International Research Center, Tempe, Arizona, 1995. State of Arizona Contract No. A6-0028-001.
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