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Small phone companies raise rates [The Gazette, Cedar Rapids, Iowa](Gazette (Cedar Rapids, IA) Via Acquire Media NewsEdge) Jan. 27--Operators of many independent local telephone companies in Iowa say they are being forced to raise rates because of a 2009 regulatory decision that cut their long distance carrier income. North Liberty-based South Slope Communications recently raised basic residential phone service from $14.50 to $16, and business phone service from $16.75 to $19 in January. South Slope CEO J.R. Brumley said the January 2009 Iowa Utilities Board decision eliminated revenues of 3 cents per minute that local phone companies received from long-distance providers for completing or originating intrastate long distance calls. He said the decision, in a case AT&T brought, reduced co-op revenue from long distance carriers by $300,000 to $400,000 annually. "It hurt us, but it also hurt the state because of the tax implications and the reduced revenue streams of the independents," Brumley said. About 50 local telephone companies in Iowa raised rates in 2009 because of the decision, Dave Duncan, president of the Iowa Telecommunications Association, said. He said the group is seeking data to resist a move to reduce fees local phone companies collect by another 3 cents per minute. South Slope would have needed to raise business rates even more to recover the full impact of the state ruling, Brumley said, but was reluctant at this time to go to the $21$22 per subscriber level it would have required. Some local phone companies are boosting their cable TV customers' rates substantially instead of raising telephone rates. Martelle Communications Co-op customers will pay $15 to $43 more per month effective March 15 for basic cable service. The co-op's least expensive broadband Internet service also will increase $15 per month, to $64.95. The co-op provides phone service to about 300 customers in the Martelle area and cable TV service to about 500. Co-op Plant Manager Greg Conrad said the co-op hasn't raised cable rates in four years but is adding channels after installing a $2 million fiber-optic network to the Fairview and Stone City areas. Conrad said cable programming suppliers required the co-op to add channels to its basic lineup as part of a deal to get more programming for its enhanced cable packages. He said local broadcast stations also want more for retransmission. -- Comments: (319) 3988317; [email protected] To see more of The Gazette, or to subscribe to the newspaper, go to http://www.gazetteonline.com. Copyright (c) 2010, The Gazette, Cedar Rapids, Iowa Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |