PUC Orders AT&T; Rate Slash
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SAN FRANCISCO — The state Public Utilities Commission on Wednesday ordered AT&T; Communications to trim its long-distance rates for calls within California by $8.3 million this year, an action that the company said will mean continued losses for its operations within the state.
The company’s California customers, who now pay a 4.21% surcharge on their monthly intrastate long-distance bills, will find a 4.13% surcharge in effect Monday.
John E. Dennis, AT&T; Communications’ vice president for regulatory relations, called the ruling “extremely disappointing.” He said the company lost $18 million on its California intrastate operations last year and predicted that the decision will ensure that the company “will continue to lose in 1985.”
Pays Local Companies
Dennis said the company paid 80% of the $1.6 billion in revenues generated last year to local telephone companies for use of their networks to originate and complete calls within the state. He said the sum is much greater than the company pays in other states.
Pacific Bell and General Telephone Co. of California agree that the current so-called access charge is excessive and artificially inflates long-distance rates, perhaps encouraging the largest phone users to create their own networks to bypass local companies.
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