Phone giants' rising rates questioned

NEW YORK — AT&T and Verizon are raising prices for caller ID and other popular phone services by as much as 300%, even as they continue to push regulators to loosen up because of increased competition.

AT&T (T) and Verizon (VZ) have argued they need pricing flexibility to compete with cable TV and others offering Internet-based phone services. Dozens of states have acquiesced, giving carriers freedom to jack up prices.

In California this month, AT&T raised prices for several stand-alone features: Anonymous call rejection now costs $5 from $1.90; caller ID rose to $9.99 from $6.17. Some local toll calls — calls that aren't considered long-distance but don't qualify as local — jumped by more than 200%.

In Ohio, AT&T raised the price of call forwarding and three-way calling from $4 each to $5.99. Automatic call back now costs $1.99 per use, up from 70 cents.

Verizon has made similar moves. Call forwarding now costs $3 a month in Ohio, a 300% increase from 75 cents. Call waiting is now $5 a month, up from $3.

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