The Nation : Lower Phone Bills Sought

Complaining about a $4-billion annual local phone bill, the Defense Department and the General Services Administration have petitioned public utility commissions in 31 states and the District of Columbia to determine whether local phone companies are making excessive profits. “We’re hoping the commissioners order immediate reductions,” said Mark Langsam, a GSA economist. Langsam was alluding to petitions arguing for lower rates that the government filed June 6 with the rate-setting bodies. The government argued that recent drops in interest rates make it cheaper for phone companies to borrow money, which means their profits “may exceed what would be considered reasonable today.”