In the five years since the breakup of the old Bell phone system, one of the last vestiges of Government regulation has been the Federal Communications Commission's control over AT&T;'s profit margin on its long-distance services. The company has been permitted to cover its costs and earn a return of precisely 12.2% on its investment. Last week the FCC voted to liberate AT&T;'s earnings, which should boost competition in the long-distance business.
AT&T; will now have an incentive to cut costs, which could lead not only to higher profits but also to an opportunity to charge lower rates. At the same...
To continue reading:
or
Log-In
