Rural Cost Reductions for Consumer Long Distance Telephone Access to Major Trade Area Markets via Senate Bill 632

Several hundred small communities throughout Texas are gaining toll free telephone access to their primary trade area in an effort to "jump start" their local rural economy (with "extended local calling" for a small monthly rate increase instead of per minute toll charges). Large cities like Dallas/Ft. Worth, Houston, San Antonio, Austin, etc. already have a similar equivalent in "metro" telephone service. Larger urban areas have rates which more equitably promote economic development. And now, state-wide efforts are under way to provide more affordable communication costs of doing business, medicine and education in rural Texas. As such, senate bill 632 has become a cornerstone in efforts to immediately revive rural Texas regions by eliminating per minute long distance telephone toll charges to "areas of significant economic interest." The loss of telephone revenue will be offset by allowing the local exchange telephone company to increase monthly rates by $3.50 and $7.00 per telephone line for residential and business telephone service respectively. Each rural community conducts a simple petition to the Texas Public Utility Commission which forces a ballot vote of local exchange telephone subscribers. The ballot, if allowed by sufficiency of the petition, is final, and if 70% of those who vote are in favor of toll free calling, it takes effect. In Texas, less than 5% of the cities filing for "extended local calling" have failed to carry enough votes to receive toll free calling. Those few cities which voted down extended local calling (after petitioning) voted it in within 18 months (after refiling for the second time). Its just that important, and just that simple. Long distance telephone savings come immediately to rural consumers. The primary trade area which is sought for "extended local calling" always benefits as much or more than the adjoining smaller towns of the region which petition the Texas Public Utility Commission for toll free calling.

For example, telemarketing companies from mid-sized urban areas (like Lubbock, Amarillo, Abilene, etc.) could never consider relocating to the rural countryside to benefit from less expensive living costs, a great work ethic, etc. because the long distance telephone costs to the consumer base in the larger, nearby city would kill the economic benefit to be gained from moving. Literally hundreds of industries within easy commute distance can not afford the long distance telephone costs to relocate outside the metro area. Our state government believes in this legislation so much that even if a community elects not to receive extended local calling that when the next telephone general rate change takes place the community electing not to receive extended local calling will pay exactly the same price rate as those cities who have elected to receive extended local calling. So, even though a city elects not to have the economic benefits of extended local calling, they will pay for it ultimately--its just that important!

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