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August 5, 1987

FEDERAL COMMUNICATIONS COMMISSION PROPOSES CHANGES IN SYSTEM OF REGULATING AT&T’s LONG-DISTANCE CHARGES

By CBR Staff Writer

The Federal Communications Commission is proposing to abandon the system of regulating AT&T’s long-distance charges on the basis of a maximum profit figure, and instead going over to a maximum price that would be adjusted annually for changes in inflation, tax rates, connection charges and other variables: the result would be that if AT&T were able to make savings by improved efficiency, it could retain the benefits, which would feed through to profits; now it has to hand them over in rate reductions.

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