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May 11, 1988

AT&T TO LOWER PRICES FOR LARGE PRIVATE LONG-DISTANCE SERVICE

By CBR Staff Writer

In a request calculated to generate widespread outrage, AT&T Co is asking the Federal Communications Commission to allow it to throw away its mandatory price list for large private long distance service customers where it is faced with lower-priced competition from the likes of MCI Communications and US Sprint: if it gets the go-ahead it wants to give Holiday Inns hotel operator Holiday Corp volume-related discounts averaging 10% because if it doesn’t, it will lose the business to MCI; it argues that MCI is offering even lower rates than the ones it is proposing, and argues that all its customers will benefit from the profit it will make if it can keeps the business.

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