Local calling proposal brings Las Vegas, Laughlin together

Kevin Rademacher

Monday, April 12, 2004 | 10:34 a.m.

The 90-mile drive between the two cities is not changing, but a proposal from Sprint could bring Laughlin and Las Vegas closer together.

Clark County's dominant local phone provider has asked the state Public Utilities Commission to approve a proposal that would eliminate long distance charges for calls between the two Southern Nevada cities. The change could take effect in August, if approved by regulators.

Sprint said the move was made at the request of Laughlin residents, businesses and civic leaders. While the new proposal stands to trim long distance rates, it won't be free.

Residential customers in Laughlin currently pay a basic phone service rate of $8.15 a month. If the request is approved, rates will jump $2.25 a month to match the $10.40 rate paid by Las Vegas customers. The basic business single-line rate in Laughlin also would jump from $13.64 to $20.75

The change is expected to affect about 3,000 residential customers in Laughlin and about 1,500 business lines.

The Laughlin Chamber of Commerce submitted a letter to the PUC supporting the move. In it, the chamber points out that Sprint's proposal was crafted at the request of Laughlin residents and businesses.

"The business community wholeheartedly supports this plan," said the letter, which is signed by chamber Executive Director JoElle Hurns and President Jim Zaborsky.

"Due to the day-to-day business interaction between Laughlin and Las Vegas businesses, this will likely result in a savings to Laughlin businesses," the letter said.

Josh Monson, manager of Joe's Pizza & Deli, makes regular calls to the restaurant's beer distributor in Las Vegas.

"It will be a very positive thing," he said of the Sprint proposal.

Debbie Dauenahuer, chairwoman of the Laughlin Town Board, said the move would be significant for her, since she makes frequent calls to Clark County offices in Las Vegas, not to mention friends and family.

"For me, it's going to be wonderful," she said. "I've heard nothing but positive remarks."

John Haldeman is executive director of the Laughlin Family Resource Center, the largest nonprofit organization in that city. He said the added fee would be a sound investment.

"It will really help our retiree population," he said. "Most all of the medical and other social and human services programs are up in Las Vegas."

That means expensive phone calls for those retirees trying to get answers to questions and arrange for appointments.

"One or two phone calls to Las Vegas will eat that (added charge) up right there," Haldeman said.

Laughlin's low-income population also would benefit from the calling change, Haldeman said. He explained that many working poor can't afford long-distance fees, yet turn to Las Vegas when in need of assistance. Most social service programs -- including Medicade, mental health programs and Veterans programs -- do not have offices in Laughlin.

In addition, the only HMO organization serving the Laughlin population is operated out of Las Vegas by Sierra Health Services Inc., Haldeman said.

"All you would have to have now is basic local service," he said.

In testimony filed with the PUC, Linda Stinar, Sprint's director of regulatory affairs, said the change also would affect the ability of Laughlin residents to receive affordable Internet access.

Stinar said some Internet carriers, such as AOL, do not have dial-up access numbers based in Laughlin. They often substitute Las Vegas numbers, making Web surfing a costly endeavor.

"Sprint projects that Laughlin customer-call volume between Las Vegas and Laughlin will increase 400 percent if the commission approves (the request)," Stinar said in her testimony.

Every other Southern Nevada community -- including Las Vegas, Henderson, North Las Vegas, Searchlight, Mount Charleston, Boulder City, Jean and Blue Diamond -- served by Sprint is already linked by local calls.

Sprint doesn't provide local service in three other small towns in Southern Nevada. Pahrump is served by SBC Communications, Mesquite is served by Rio Virgin Telephone and Caliente is served by Lincoln County Telephone System.

In its filings with the PUC, Sprint described the move as "revenue neutral" for the company. It is ultimately expected to cost Sprint about $9,200 in annual revenue. Overland Park, Kan.-based Sprint posted $38 million in fourth-quarter net income.

Nevada Consumer Advocate Tim Hay said the plan appears to be positive for both the company and consumers.

"We thought, considering the population growth out there and the opportunity to avoid some toll calls for them, it was probably a good idea," he said.

Sprint also is in talks with Frontier, the telephone company serving Bullhead City, Ariz., across the Colorado River from Laughlin. Through those discussions, Sprint is attempting to eliminate long-distance charges between Laughlin and Bullhead City as well.

Detra Page, a Sprint spokeswoman, said talks are proceeding. If issues can be worked out, the resulting plan would require approval of the PUC and the Arizona Corporation Commission.