Settlement for Nynex and F.C.C.; company may face tougher time now in New York's case

Article Abstract:

Nynex Corp settles charges by the FCC, which had accused Nynex of overcharging customers and padding expenses. Nynex agrees to pay a $1.4 million fine and lower by $35.5 million interstate access charges for one year. The action adds to Nynex's problems with the New York State Public Service Commission, which is investigating related charges. The FCC charged that two Nynex units - New York Telephone and New England Telephone - had bought equipment from a Nynex subsidiary at inflated prices and that the costs were then passed to to customers making interstate calls. State officials have made similar accusations. The FCC action could strengthen the hand of Nynex's critics because Nynex has agreed to all penalties proposed by the FCC when it first brought charges. The settlement could also weaken Nynex's request before the state commission for rate increases in 1991.

Regulation, admin. of utilities, Laws, regulations and rules, United States. Federal Communications Commission, Government Regulation, Court Cases, New York Telephone Co., New England Telephone and Telegraph Co., New York (State). Public Service Commission, New York. Public Service Commission

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U.S. jury indictment of Nynex: 'Baby Bell' accused of violating order on A.T.&.T. breakup

Article Abstract:

The United States Department of Justice files before a Federal grand jury indictment charges against NYNEX Corp on a single count of violating one of the business prohibitions placed on the regional Bell operating companies (RBOC) following the breakup of AT and T. The indictment charges NYNEX with violating the prohibition against generating computerized information over telephone lines. The charges involve NYNEX's acquisition of Telco Research Corp, a Nashville based software company. NYNEX is accused of continuing to operate Telco's business of selling computer data processing services over telephone lines to MCI Communications Corp. The indictment will probably make it more difficult for the RBOCs to convince Congress to overturn three business prohibitions.

Mergers, acquisitions and divestments, Telecommunications industry, United States. Department of Justice, Information services, American Telephone and Telegraph Co., Legal Issues

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