Panel declares more SBC areas in Missouri competitive

JEFFERSON CITY, Mo. -- SBC Missouri can raise and lower rates as it sees fit in nearly half of its business and residential phone markets in Missouri, the Public Service Commission announced Wednesday.

The commission said it granted the phone company's request to declare 51 residential and 30 business exchanges competitive under a new state law that makes it easier for companies to reach that designation.

Residential services declared competitive include Cape Girardeau, Jackson, Dexter, Kennett, Poplar Bluff and Sikeston. Business services declared competitive include Chaffee and Kennett.

A competitive declaration frees a company from many state pricing restrictions and other regulations. Supporters say the change will lead to more competition and new technology for consumers, but critics worry it will mean higher phone bills.

The commission said all of the areas covered also are served by at least two wireless companies, and often there's also a company providing service over the Internet.

In September, the commission declared another 26 residential and 45 business exchanges competitive. SBC has 160 exchanges in all, which handle both business and residential service.

A local telephone exchange is declared competitive, upon request, if there are two companies besides the established company providing service. Only one of those other companies can be a wireless provider.

Companies that lack their own lines and equipment but simply resell service -- such as phone service over the Internet -- don't automatically count. In those cases, a major company such as SBC can ask the commission for a competitive declaration, which considers evidence under a more subjective standard and has longer to decide.

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A list of SBC exchanges declared competitive is at www.psc.mo.gov/press/pr-06-64.pdf.