(a) In a market that remains regulated, a transitioning company shall price the company’s retail services in accordance with the provisions that applied to that company immediately before the date the company was classified as a transitioning company.
(b) In a market that is deregulated, a transitioning company shall price the company’s retail services as follows:
(1) for all services, other than basic local telecommunications service, at any price higher than the service’s long run incremental cost; and
(2) for basic local telecommunications service, at any price higher than the lesser of the service’s long run incremental cost or the tariffed price on the date that market was deregulated, provided that the company may not increase the company’s rates for stand-alone residential local exchange voice service before the date that the commission has the opportunity to revise the monthly per line support under the Texas High Cost Universal Service Plan pursuant to Section 56.031, regardless of whether the company is an electing company under Chapter 58.

(c) Except as provided by Subsection (c-1), in each deregulated market, a transitioning company shall make available to all residential customers uniformly throughout that market the same price, terms, and conditions for all basic and non-basic services, consistent with any pricing flexibility available to such company.
(c-1) A transitioning company may offer to an individual residential customer a promotional offer that is not available uniformly throughout the market if the company makes the offer through a medium other than direct mail or mass electronic media and the offer is intended to retain or obtain a customer.
(d) In any market, regardless of whether regulated or deregulated, the transitioning company may not:
(1) establish a retail rate, term, or condition that is anticompetitive or unreasonably preferential, prejudicial, or discriminatory;
(2) establish a retail rate for a basic or non-basic service in a deregulated market that is subsidized either directly or indirectly by a basic or non-basic service provided in an exchange that is not deregulated; or
(3) engage in predatory pricing or attempt to engage in predatory pricing.
(e) A rate that meets the pricing requirements in Subsection (b) shall be deemed compliant with Subsection (d)(2).