AT&T; Gets OK to Offer New Phone Services

The Federal Communications Commission on Thursday gave AT&T; permission to offer several new long-distance telephone services for large businesses.

The new services, which AT&T; calls “state-of-the-art” technology, would allow firms to streamline their private long-distance communications networks and reduce costs.

“The decision is a good one for the country,” said James R. Billingsley, AT&T; senior vice president of federal regulation. He said the vote enables AT&T; to provide state-of-the-art technology to its business customers.

The commission’s actions, however, were immediately challenged by the United States Telephone Assn., a group representing many of the local phone companies. The group contended that these new services will encourage businesses to bypass the local telephone companies and hook up directly to AT&T;, thus leaving a dwindling number of users to shoulder the costs for local telephone service.

John Sodolski, USTA president, accused the commission of acting “prematurely,” saying that its action will increased the threat of bypass.

Rising ‘Access’ Fees

Currently, long-distance companies pay “access” fees to local telephone companies for the local connection that hooks up long-distance circuits to individual customers. As these fees--which are passed on to the business customer--increase with usage, there is added incentive for companies to find alternative ways to skip local service.

In separate actions, the commission approved AT&T; proposals for:

- “Software defined network” services, which essentially would allow large business customers to use AT&T;’s computer technology and parts of AT&T;’s long-distance network to create private lines. Private lines are separate circuits leased by businesses for their private voice and data transmissions between designated locations.

Currently, private-line customers pay flat monthly rates for the circuits. The new service would allow many customers to supplement or replace existing private lines and would charge them only for the distance and time that they use the AT&T; network.

The FCC said that the new service can take effect Nov. 4 but noted that it will continue to investigate certain rate issues associated with the service.

- New “Megacom” and “Megacom 800” services to take effect Nov. 8.

Megacom service, for outgoing calls, enables large-volume business customers to be billed according to a new pricing structure that measures the actual mileage and duration of each call. Megacom 800 is a similar service but for incoming calls.

With these services, customers can choose to make or receive calls from one or more of six separate geographic areas.