PR-09-129 -- CenturyTel Becomes Competitive Company In All Of Its Exchanges

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- JANUARY 5, 2009

JEFFERSON CITY---CenturyTel of Missouri, LLC (CenturyTel) has been declared a competitive telecommunications company, having met the statutory test in House Bill 1779 (HB 1779), passed by the Missouri legislature this year.

As a competitive company, CenturyTel will no longer be subject to price or rate regulation by the Missouri Public Service Commission in any of its exchanges. 

Under a state law passed in 2005 (SB 237), CenturyTel sought and received competitive classification for residential services in 19 exchanges and for business services in 26 exchanges.  As a result of being deemed competitive, the marketplace determines the price for services in those exchanges.  

Under HB 1779, a telecommunications company shall be deemed a competitive company if 55% or more of its total subscriber access lines (customer telephone lines) are in exchanges where its services have been declared competitive. 

In CenturyTel’s filing with the PSC, the company states subscriber access lines in its current competitively classified exchanges constitute approximately 57% of its total subscriber access lines. In a filing with the commission, the PSC staff stated CenturyTel met the criteria to become a competitive company.

Under this current CenturyTel case, the remaining 77 exchanges will be designated as competitive for residential services and the remaining 70 exchanges will be designated as competitive for business services.  In the 77 exchanges that will be designated as competitive for residential services, HB 1779 states any annual increase in rates for residential basic local telecommunications service shall not exceed $2.00 per line per month for the next four years.  Rates for business services will be determined by the marketplace.   

The commission will continue to monitor CenturyTel’s residential basic local rates as well as the percentage of residences and businesses that subscribe to CenturyTel’s services.  If, for example, the PSC staff determines that CenturyTel has not complied with the rate limitations of the law or that its rates have become so high that they serve as a deterrent to receiving service from the company, the staff is to notify the commission in a written report.

The CenturyTel exchanges that will become competitive under this filing for residential services include: Alton, Ashland, Augusta, Belle, Bland, Blue Eye, Bradleyville, Branson West, Buffalo, Cape Fair, Caulfield, Cedar Creek, Centralia, Chamois, Clark, Conway, Cross Timbers, Defiance, Dora, Elkland, Foley, Fordland, Foristell, Gainesville, Galena, Hallsville, Hawk Point, Hermann, Hermitage, High Hill, Highlandville, Holstein, Hurley, Jamestown, Jenkins, Jonesburg, Koshkonong, Leasburg, Louisburg, Mano, Marthasville, Morrison, Moscow Mills, Mount Sterling, Mountain View, New Melle, Niangua,  Old Monroe, Ozark, Pittsburg, Prairie Home, Preston, Protem, Reeds Spring, Rocheport, St. James, Safe, Shell Knob, Sparta, Sturgeon, Summersville, Thayer, Theodosia, Thomasville, Troy, Truxton, Urbana, Vichy, Warrenton, Washburn, Wasola, West Plains, Wheatland, Willow Springs, Winfield, Wooldridge and Wright City.

Prior to being designated as competitive, the above exchanges were under price cap regulation.  Under price cap regulation, basic local telephone rates changed, up or down, based upon a consumer price index. 

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Case No. IO-2009-0216