Local phone bills will increase by 60...

Local phone bills will increase by 60 cents, effective today, bringing the monthly “subscriber line charge” imposed by the FCC to $3.20. The FCC also required AT&T; to trim its long-distance rates by a corresponding amount, or 3.8%, to reflect the lower fee it now pays Pacific Bell, GTE California and other local phone companies for completing interstate calls. The FCC created the charge to replace internal “subsidies” that AT&T; formerly provided to reduce the fixed cost of basic phone service--revenue lost when AT&T; lost its local phone business. A final, 30-cent cost-shift next April 1 will boost the charge to $3.50.