FCC May Give AT&T; More Freedom to Vie With Its Rivals

WASHINGTON — The Federal Communications Commission today proposed to loosen its regulation of AT&T;, saying the one-time phone monopoly now faces “significant competition” in the interstate long-distance marketplace.

The commission, in a 4-0 vote, adopted a staff proposal that, if finally approved, would give the American Telephone & Telegraph Co. some of the freedom it says it needs to maneuver against competitors such as MCI Communications Corp. and US Sprint.

The FCC last year gave AT&T; a major deregulatory victory when it dumped its 20-year rate-of-return regulation of AT&T;’s profits in exchange for a system that controls AT&T;’s prices within certain limits tied to the rate of inflation.

The commission proposed phased-in changes in certain business services, extending later to 800 services, international messaging and operator services.