ekrell@ulysses.att.com (10/05/90)
Excerpts from {The New York Times} and AP news articles.
As part of a consent decree between New England Telephone, New York
Telephone and the FCC, the two companies will make a voluntary $1.4
million payment to the US Treasury and cut their long distance rates
by $35.5 million.
The $35.5 million is the interstate portion of the $118.5 million
alleged overcharges for equipment, supplies and services paid to
Materiel Enterprises Co., an unregulated subsidiary of NYNEX, from
1984 to 1988.
The $35.5 million rebate will not affect local phone rates and will be
made within 30 days. The $1.4 million payment to the Treasury will be
paid by NYNEX shareholders and will not affect telephone rates.
This agreement ends one of several pending federal and state actions
against NYNEX, which is also the focus of investigations into parties
held in Florida for NYNEX employees and vendors which included
prostitues. NYNEX denies any ratepayer funds were used in those
conventions.
As a result of all this, the New York State PUC authorized a study
into whether NYNEX should be forced to divest New York Telephone.
Eduardo Krell AT&T Bell Laboratories, Murray Hill, NJ
UUCP: {att,decvax,ucbvax}!ulysses!ekrell Internet: ekrell@ulysses.att.com