Reversing the Charges

The FCC cuts long-distance telephone rates by $1.8 billion

Despite the court-ordered divestiture of American Telephone & Telegraph that took place on Jan. 1, reaching out and touching Aunt Maude in Dubuque has continued to be an expensive proposition. Ma Bell has long claimed that it was levying high rates on long-distance service as a way of keeping down the cost of local calls. Last week the Federal Communications Commission took a giant step toward rearranging that system by ordering AT&T to slash long-distance rates by 6.1% beginning May 25. The move could save American consumers up to $1.8 billion a year.


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