[net.news.sa] Telephone Rates

lauren@vortex.UUCP (Lauren Weinstein) (03/06/86)

If you're interested in the history of post-divestiture rate issues, I
strongly urge you to pick up some copies of the various
communications-oriented periodicals that go into such matters in
great detail.  I recently saw an article in one of them (but I
don't recall which one) that went through all this point-by-point.

Basically, the FCC still considers AT&T to be a "special case."  They
are still FAR more constrained by the FCC when it comes to rate 
setting than are their competitors.  There is a long history (since
divestiture) of AT&T proposing various sorts of long distance calling
reductions that have been disapproved by the FCC, usually after
loud screams of protest from MCI, etc., who consider an AT&T free
to lower their overall rates too much of a threat.  So AT&T's competitors
protest virtually every action AT&T makes to lower rates, establish
discount packages for consumers and/or businesses, etc.

In practice, the pattern of FCC approved rate reductions for AT&T has tended 
to favor bulk buy plans rather than across-the-board reductions.  Remember
that AT&T is faced with paying the same increased costs for local network 
access as is its competitors, but is faced with a more restrictive rate
setting environment which makes it much more difficult for them to
adjust their overall rate structures in a fully flexible manner.

If you check out the history of FCC disapproved AT&T requests for LOWER
RATES in various areas, you might be quite surprised.  In any case, I'm
not going to try discuss here the issues that surround the overall 
question of whether or not such tight control of AT&T by the FCC is
or is not currently necessary to ensure a competitive environment.
I'm only pointing out that such control is presently in force.

--Lauren--