AT&T; Given More Leeway on Long-Distance Pricing

American Telephone & Telegraph on Friday was granted new flexibility in offering consumers discount long-distance pricing options.

The Federal Communications Commission voted 4 to 0 to allow AT&T; and the local Bell operating companies to develop discount packages for interstate long-distance calling if they can show that the plans pay for themselves.

The commission had been insisting that all optional plans also absorb a portion of a company’s general costs of offering long-distance service.

The companies will be required to demonstrate only that revenue will increase and that customers who don’t use the plan do not face rate increases or lose rate reductions because of the optional plans.

The commission said that, if an optional plan loses money, it will come out of profits and will not be made up by customers not using the plan.

FCC Chairman Mark S. Fowler said the order would increase “the ability of AT&T; to compete on a fair basis through the offering of price cuts to its subscribers.”

Because the rules are more specific, proposals can be drafted by the companies faster and won’t take as long for the FCC to consider. AT&T; officials now say the new rules will make it possible for them to get plans in place in 45 to 90 days.

The most recent AT&T; optional plan took eight months for the commission to consider before rejecting it.

AT&T;’s long-distance competitors are not required to get FCC approval for rate changes.

The regulated phone companies hope to increase overall revenue by using the discounts to induce customers to make more phone calls.

The rules require that all customers be offered the plans to make sure that rural users, who cost more to serve, will benefit from competition for long-distance business.