Settlement freezes rate of AT&T's last regulated plan

John O'Brien Mar. 22, 2007, 4:00pm

LANSING, Mich. - AT&T's Michigan customers will save $1 a month as a result of a settlement called "significant" by Attorney General Mike Cox's office.

Cox's case, settled Tuesday, involved the only rate-regulated plan still offered by AT&T, its Basic Local Exchange Service. It is also known as the "Call-100 Plan."

"Today's settlement agreement is a victory for Michigan consumers," Cox said. "Every dollar of savings counts for families trying to make ends meet. This settlement will keep more money in customers' pockets."

Subscribers to the plan will pay $14.36 a month for it, instead of the $15.36 sought by AT&T. The plan is a basic service package that includes a minimum of 100 calls per month. The rate is frozen until Dec. 31, 2008.

With the rate frozen, Cox urged consumers to take a look at the plan.

"I believe that based on the number of calls made, many people, especially seniors and low income customers, can experience significant savings by taking advantage of the rate-regulated Call-100 plan," he said.

Cox added he will continue to fight against "unreasonable" utility costs.

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