By Gargi Chakrabarty, The Indianapolis Star Knight Ridder/Tribune Business News
Jul. 3--Ameritech Indiana will more than double the charge for dialing directory assistance to 85 cents from the current rate of 40 cents per call. The increase, which will take effect Aug. 24, is among other rate changes recently announced by the company.
The charge will increase 20 cents -- to $1.10 -- for those who dial 0 and ask an operator for a number, instead of calling directory assistance at 411.
One rate is dropping. The charge for having directory assistance dial the number you want will decrease 5 cents -- to 20 cents.
All customers will be notified of the price changes by July 27.
"Residential and single-line business customers will continue to receive two directory-assistance calls per month at no charge," said David Bear, an Ameritech spokesman, on Monday.
With the upcoming rate changes, a customer placing three directory assistance calls in a month will receive the first two calls free and pay 85 cents for each call thereafter.
Customers will continue to be able to request two listings per call.
"Two free directory-assistance calls per customer was agreed upon as part of Opportunity Indiana 2000, an alternative regulatory plan," Bear said.
The alternative guidelines allow the utility company to operate under relaxed regulations in exchange for cutting rates and adding services.
However, certain competitive services such as voice mail, caller ID and other custom-calling features are not regulated by the Indiana Utility Regulatory Commission.
"Directory assistance, a competitive service, is not regulated under Opportunity Indiana 2000," said Michael Leppert, IURC's executive director. "Ameritech can increase rates of this service by issuing a notice. It doesn't have to seek a regulatory review.
"Pricing flexibility in such services is a motivator to get more competition."
Though the state cannot regulate Ameritech on this rate hike, there is a silver lining.
"Nobody likes to see rate increases," said Anthony Swinger, a spokesman for the Indiana office of the Utility Consumer Counselor. "The good news is that word is getting out in advance. Now customers will have more time to shop around for other options.
"We want customers to know there are other directory assistance (options), such as cellular services and the Internet."
Besides, free phone books are given to all customers, he said.
Ameritech estimated that fewer than 8 percent of its retail residential and business customers will be affected by the price changes.
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(c) 2001, The Indianapolis Star. Distributed by Knight Ridder/Tribune Business News.
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