Wow, this is pretty strange behavior for a company that is hemorrhaging access lines.

AT&T (T) has unveiled plans to raise landline phone rates by more than 20 percent in California, according to both the San Jose Mercury News and the San Francisco Chronicle.

The company plans to start telling customers next week that charges for basic phone service will jump to $16.45 from $13.50 effective January 2.

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Top U.S. telecommunications executives Thursday gave a mixed outlook on the economy, saying business conditions have stabilized but they don’t see signs of a quick recovery.

The telecom industry has been relatively shielded from the worst effects of the downturn thanks to the growing need for wireless and Internet services. But it isn’t completely immune, as carriers face continued landline losses, weak demand from businesses and pricing pressure in wireless.

“Stabilization” was the key buzzword for the heads of AT&T Inc. (T), Verizon Communications Inc. (VZ), Sprint Nextel Corp (S). and Qwest Communications International Inc. (Q), all of whom spoke Thursday at an investor conference hosted by Goldman Sachs.

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Verizon Communications Inc. (VZ) boss Ivan Seidenberg may be one of the best deal makers of his time, or one of the worst.

Today, three of Verizon’s most significant divestitures are either in bankruptcy or near it. As they say on Wall Street, it all depends on what side of the trade you’re on.

Verizon’s former yellow-pages unit, which goes by the ungainly name of Idearc, sought court refuge from creditors in May; Verizon’s former Hawaiian telecom franchise, purchased by Carlyle Group, filed for bankruptcy in December, and FairPoint Communications, which absorbed landlines from Verizon in a complicated divestment, is close to going under, the company said in a July securities filing. In all, these companies have lost upward of $13 billion in value and counting.

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Most Americans now have mobile phones, and a Nielsen Mobile report last year found that nearly one in five of us have cut the cord, abandoning our landline service entirely. Danny Kessler of Tempe, Arizona, is one of those people, except he has gone the next step: He recently gave up his cell-phone contract too. Kessler’s no hermit: He’s a 27-year-old personal-safety instructor who has to be in touch with his clients.

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When Google (GOOG) announced its integrated phone service called Google Voice Thursday, it said something very loudly.

Google is saying it wants to be the world’s communication hub, and hundreds of companies–ranging from mobile phone operators to Skype to Microsoft (MSFT) better be listening.

Google Voice is a free service that offers “one number for life,” so that one incoming call to that number gets forwarded to all your other numbers–work, mobile, home or hotel room. Users get free calls across the United States and international rates cheaper than Skype. Landlines, computers and cellphones can all access its services.

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When AT&T (T) grudgingly agreed to break itself up 25 years ago, it was seen as a truly momentous event in the history of the telecommunications industry. Today, however, some experts question not only whether the breakup of AT&T was necessary, but whether it even had any long-term impact on the telecom market.

The breakup deal forced AT&T to spin off its local divisions that would then become local exchange carriers, and in return, AT&T was allowed to keep its long distance services division.

However, the rise of wireless services as alternatives to landlines, as well as the entrance of cable companies such as Comcast (CMCSA) and Time-Warner (TWX) into the VoIP market, has led some to conclude that the breakup of Ma Bell is irrelevant to the current telecom market.

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