Could Restore One-Stop Shopping for Consumers : Bill Seeks to End Court’s Power Over Ex-AT&T; Firms

WASHINGTON —  The court-imposed agreement that broke up AT&T; would be eliminated under a proposal being launched in Congress with the blessing of the Reagan Administration.

The legislation comes too late to put Ma Bell back together, but proponents think it will make phone companies better able to sell products abroad and let them compete with each other in new ways to the benefit of U.S. consumers.

If the plan ever goes into effect, it could restore one-stop shopping for customers who want to get their phone line, telephone and local and long-distance service from the same company.

Senate Majority Leader Bob Dole (R-Kan.) is prepared to try to get the bill passed before the end of the year, the draft says. Dole claims substantial support from the Administration for the legislation, which was drafted with the help of the Federal Communications Commission and Administration executive agencies.

The legislation may be introduced as early as Monday.

The measure would give the same authority over telephone company expansion to the FCC that is now held by U.S. District Judge Harold H. Greene.

If the bill passes, Dole expects that the Justice Department would ask Greene to relinquish to the FCC authority to ensure continued competition in long-distance and telephone equipment manufacturing, businesses in which American Telephone & Telegraph Co. once had a monopoly.

Greene has exercised the power since 1982, when he approved the agreement that led to the breakup of the Bell System and expanded it a little over a year ago when he approved a similar antitrust settlement between the Justice Department and GTE, which has about 9% of the local phone business.

His recent public statements have indicated that Greene is growing increasingly weary of the chore.

Before a local Bell company can involve itself in any business other than telephone service in its assigned area, it must get the Justice Department and Judge Greene to approve. Although he has allowed them to get into businesses such as real estate and printing, Greene won’t allow the seven regional AT&T; spinoff companies into manufacturing or long-distance service.

If Greene goes along, the FCC would have the power that he now exercises to grant waivers to the decree’s restrictions. The commission has been quicker to relax its regulatory authority over telephone companies.

Dole thinks that the FCC, with its staff of engineers, accountants and communications lawyers, is in a better position to evaluate the wisdom of diversification and expansion by the companies than the Justice Department. The senator believes that Congress never intended that the antitrust enforcement machinery be used for the long-term regulation of industries.

Those who argue against diversification say the size of the companies--all are among the 35 largest in the United States--would allow them to become seven smaller versions of the former AT&T; monopoly that the government said violated antitrust laws.