Regulators Loosen Rules Curbing At&T;

Fri., Jan. 13, 1995

Compiled From Wire Services

Federal regulators Thursday lifted heavy regulations on AT&T’s long-distance service to small businesses, allowing it to set rates as quickly as competitors.

The Federal Communications Commission action makes it much easier for AT&T to set its own rate for basic long-distance service to small businesses that don’t qualify for volume discounts, federal regulators and company officials said.

“It is a competitive area,” said AT&T spokesman Jim McGann. “We have less than 50 percent of the market.”

Under the streamlined regulation, proposed rate changes by AT&T may take effect within 14 days of filing a plan with the FCC. The rate also is not guided by a federal formula. The streamlined regulation is used by MCI, Sprint and others.

The FCC decided to streamline AT&T’s regulation after finding “evidence of substantial competition” in the commercial services market.

Up to now, AT&T’s longdistance rates for small business were calculated under a federal formula. AT&T submitted the rate, with extensive cost data, to the FCC. The rate could take effect within 45 days of the filing.

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Regulators Loosen Rules Curbing At&T;

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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