Justices Refuse to Lift Restriction on Regional Bell Firms

The Supreme Court today resolved a lingering controversy over the breakup of AT&T;, rejecting a challenge from one of the seven regional Bell companies that provide local telephone service.

The justices denied an appeal by Denver-based US West, which argued that the agreement that led to the breakup is not binding on the regional companies and unlawfully keeps them from engaging in any business other than local telephone service.

In 1974, the federal government sued American Telephone & Telegraph Co. for keeping competition out of the telephone industry. Eight years later, AT&T; divested its 22 operating companies, which provided the majority of the nation with telephone service.

US West is one of the seven regional holding companies that were created under the consent decree.