The Commission, in Proceeding R.05-04-005, adopted regulations consistent with both statutory guidance and market conditions to rely more heavily on competitive forces to produce "just and reasonable" rates for California's telephone consumers. Though, basic services remain subject to tariff filing with the Commission, service providers may adjust rates in response to the market conditions, effective when filed.
Small, rural local exchange carriers are subject to regulations that minimize any basic telephone service rate disparity between rural and metropolitan areas. These companies are subject to stricter tariff review than are URF companies. For more information, see the California High Cost Fund-A page on the Commission's website.