U.S. Wants Curbs on Bell Firms Lifted

The government today asked the federal judge presiding over the breakup of the Bell System to lift virtually all restrictions on the seven regional Bell telephone companies.

If U.S. District Judge Harold Greene adopts the Justice Department’s recommendations--favored by the Bell companies and opposed by the American Telephone & Telegraph Co. and other long-distance phone companies--the Bell firms would be allowed to manufacture telephone equipment, provide computerized information services such as electronic Yellow Pages and provide long-distance phone service outside their geographic region.

The restrictions were built into the 1982 decree that broke up the AT&T; empire in order to prevent anti-competitive practices.

Since divestiture took effect in January, 1984, Greene has approved more than 100 waivers to allow the Bell companies to enter new markets.

In the 210-page filing, the Justice Department said the restraints no longer serve a purpose. If they continue, competition may suffer and Americans will be deprived of new communications services, the department said.