Despite the recession and the fact AT&T should want more people using their landline service, the baby bell is raising landline prices in California some 20%, according to the Mercury News. AT&T and Verizon convinced California lawmakers to erode consumer price caps over the last few years, promising lawmakers the result would be lower prices. AT&T says the price hikes, which will hit about half of California residents, are simply being adjusted to "market levels." "There's nothing in the economy or the cost of providing phone service that would justify a 22 percent increase," said Harvey Rosenfield, founder of Consumer Watchdog.

David Lazarus at the LA Times explored the issue in detail last year, noting how since 2006 when California started lifting price controls, AT&T has increased the average price of three-minute daytime local calls by 34%, evening calls by 92% and nighttime and weekend calls by 233%. Call waiting has gotten 86% more expensive, while even the charge not to have your name printed in the phone book went up 346%.