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SBC Law in Illinois Invalid, Court Says

By AP/KWMU

Springfield, Ill. – A federal court Monday agreed with a lower court ruling that a law allowing SBC Illinois to raise rates is invalid.

Specifically, the law would have let SBC increase the rates it charges competitors to use its network of phone lines for local service. The court says that violates federal law over how states set phone rates.

The law was controversial in the Spring, specifically because of how quickly it moved through the legislative process.

Governor Blagojevich signed the measure into law just five days after it was first introduced in the Legislature.

A federal circuit judge in June threw out the law and Monday the appeals court agreed with that ruling.

The appeals court also ordered state regulators to approve a new rate system quickly because the old rates don't comply with federal law.

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