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Consumer Groups Call for Tighter Regulation as AT&T Hikes Rates

California consumer groups say newly-announced rate hikes by AT&T are an indication regulators need to do more to exert their control over the telecommunications market. The company is raising the cos

Consumer Groups Call for Tighter Regulation as AT&T Hikes Rates

California consumer groups say newly-announced rate hikes by AT&T are an indication regulators need to do more to exert their control over the telecommunications market. The company is raising the cost of a host of optional services on business packages, directory assistance and toll calls.

Mindy Spatt works for The Utility Reform Network . She says it's the second price hike for AT&T in less than a year.

Spatt : The CPUC made a huge mistake when it lifted these price controls, but it did imply at that time that if, if consumers were being harmed, they would reconsider. And it’s certainly time to do that.

AT&T officials dispute that conclusion. They say the cost for basic phone services are not going up, just some telephone options. They say most of their customers won't be affected.