AT&T; Trims Rates: Starting July 1, it...

AT&T; Trims Rates: Starting July 1, it will cut prices on several long-distance services, including basic service, by about $140 million. The reduction will save AT&T;’s average residential customer, who spends $7.97 a month on interstate calls, about 6 cents. AT&T; said the trim results from approval by the Federal Communications Commission of a new approach to regulating the nation’s dominant carrier, replacing a profit limit with “caps” limiting prices but allowing AT&T; to lower rates without hearings. AT&T;’s incentive under the new scheme is to trim costs to maximize its now-unregulated profit.