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March 8, 1987

MCI NOW SUPPORTS AT&T ON DEREGULATION OF LONG DISTANCE-SERVICES

By CBR Staff Writer

MCI Communications Corp, having pressed for rigorous regulation of AT&T in the long-distance telephone market, suddenly realises that it has been shooting itself in the foot because the rate of return rules mean that AT&T has to cut prices more steeply than it would wish, in turn forcing its competitors to follow suit to the point where they are bleeding profusely: MCI has now decided that it soon won’t have a leg to stand on if things carry on as they are, and is backing AT&T’s bid to have long-distance services deregulated.

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