A.T.&T. sets long-call rate cuts

Article Abstract:

AT and T is reducing its annual long-distance telephone rates by $300 million beginning Jul 1, 1990. The reduction, which is the minimum allowed by the Federal Communications Commission (FCC), will cut the cost of evening calls from Sunday to Friday by 5 percent, daytime rates by 0.5 percent and operator-assisted calls by 3 percent. Also effective July 1, the FCC has ordered local telephone companies to reduce by $1.1 billion a year the fees they charge for conveying calls to long-distance switching centers. The FCC says the reduction of the rates AT and T charges, combined with the reduction of its payments to local telephone companies, should save AT and T $625 million a year, a figure AT and T did not dispute, thereby increasing AT and T's pretax profit by $325 million a year. AT and T is also instituting a new charge of 60 cents for the first long-distance directory-assistance call each month.

Business planning, Profit Analysis

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A.T.&T. plans to cut long-distance costs 2%

Article Abstract:

AT and T is cutting its long-distance telephone rates an average of 2 percent due to the lower access fees it will pay to local telephone companies. The corporation predicts savings of $20 million for consumers and small businesses. The regional Bell telephone companies will reduce their fees in Jul 1992. Price cuts will vary by locale and time of day. As an example, a 10 minute coast-to-coast call made between 5 p.m. and 11 p.m. will be reduced from $1.55 to $1.50. However, calls made during daytime hours will increase slightly in cost. Access fees for long-distance telephone companies are set equally for the major companies currently, but this could change if a decision is made by the US Federal Communications Commission, charging different rates for dedicated transport and common transport.

Electronic computers, Regulation

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A.T.&T. seeking 1.1% cut in day long-distance rates

Article Abstract:

AT and T unveils a plan to reduce daytime long-distance rates by 1.1 percent, or a total of $33 million annually. The rates would be in effect from 8 AM to 5 PM, Monday through Friday. The move will in part counteract AT and T's announcement, in Oct of 1990, that it wished to raise evening and weekend long-distance rates by 2.2 percent. The FCC has yet to rule on either price change, but under its price-cap regulations AT and T can raise or lower prices on individual services as long as it average prices do not exceed certain limits. Consumer advocates say the rate shift will benefit affluent consumers and businesses while hurting price conscious consumers who take advantage of the cheaper off-hour rates.

Price Increases

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