Last week, Illinois state regulators approved a deal that will allow AT&T to increase residential phone rates in northern Illinois. The Illinois Commerce Commission agreed to reclassify local phone service in Chicago and its surrounding suburbs as "competitive," which exempts AT&T from complying with certain rate restrictions, said ICC spokeswoman Beth Bosch.
In exchange, AT&T voluntarily agreed to limit annual rate increases for four years. Monthly usage fees would not increase by more than a dollar each year and per-call fee increases would be capped at a half-cent, she said.
"This compromise provides AT&T with enough regulatory certainty and flexibility to compete with our unregulated rivals," Carrie Hightman, president of AT&T Illinois, said in a statement.
New rates can take effect beginning Jan. 1.
