The California phone rush is on

Article Abstract:

The California Public Utilities Commission plans to open the local-long-distance telephone services market to competition starting in Jan 1994. Local telephone companies such as Pacific Bell and GTE will lose their monopoly on toll calls made within the 11 local access and transport areas in California under the plan. Such long-distance companies as AT&T, MCI Communications and Sprint, and such long-distance-service resellers as Cable and Wireless Communications, Execuline and Bittel Telecom will be able to enter the market. The main losers under the plan will be low-income residential customers, whose basic local-access rates are currently subsidized by artificially high local-long-distance charges. Businesses that make many local-long-distance calls will benefit most from an expected 50 percent drop in rates. Pacific Bell and GTE are not protesting the plan, since it will have little impact on their overall revenues and customers must initially use 4-digit codes to access alternative service providers.

Telephone and telegraph apparatus, Telecommunications systems, Long distance telephone services, AT&T Inc., California, Market share, GTE Corp., GTE, California. Public Utilities Commission, Long-Distance Telephone Service, Local Access and Transport Area

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Regulatory victory for A.T.&T.; F.C.C. ruling allows its custom networks for big businesses

Article Abstract:

The FCC rules that AT and T can continue offering customized networks to big business customers, but the FCC rejects a discount plan allowing AT and T to lower rates to match a competitors bid for service offered to a big business customer. The FCC agrees to study competition in the long-distance telephone industry and the rules restricting AT and T for lowering prices. Rival carriers charge that AT and T's customized services discriminate against customers not offered the services, but the FCC disagrees and rules that more flexibility in offering services will encourage competition and benefit customers. The FCC's rejection of AT and T's discount plan only applies to a proposed bid to Holiday Inn and does not address the broader issue of whether or not the carrier should be allowed to offer discounts.

T, American Telephone and Telegraph Co., Price control, Price regulations, Telephone systems, Networks, Telephone System, Government Regulation, Lawsuits, Telecommunications Services Industry, Private Networks

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U.S. accuses 2 Nynex companies of overcharging and fines them

Article Abstract:

The Federal Communications Commission has levied a $1.4 million fine against the New York Telephone Company and the New England Telephone and Telegraph Company, both Nynex-owned companies, for an illegal plan that overcharged customers. Nynex has also been ordered to return an additional $35 million to customers in the form of reduced long-distance charges. The FCC alleges that Material Enterprises, a volume purchasing division of Nynex, sold equipment and supplies to the New York and New England telephone companies for inflated sums amounting to $118.5 million between 1984 and 1988. Nynex Chmn William C. Ferguson says he wants the customers to 'understand clearly that there has been no intention of overcharging.'

Cases, Auditing, Price fixing, Regulation, NYNEX Corp., NYN, New York Telephone Co., New England Telephone and Telegraph Co.

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