Rivals Trying to Steal Customers, AT&T; Says

American Telephone & Telegraph Co. today accused rival MCI Communications Corp. and other long-distance companies of trying to steal its customers, but MCI said the problem was exaggerated and mostly honest mistakes by sales staff.

“In the last six months alone, over 90,000 AT&T; customers have told us that they were victims of slamming,” AT&T; Vice President Merrill Tutton told a House Government Operations subcommittee.

Slamming is changing a customer’s long-distance service to another company without permission.

Tutton said the actual number of switches without authorization was probably several times higher, because many customers did not know they were switched or did not complain.

MCI Vice President Eugene Eidenberg admitted that slamming does occur but he said, “Let me state emphatically that the frequency of unauthorized switching has been grossly exaggerated by AT&T.; Much more common than the intentional switching by an inter-exchange carrier is a simple, honest mistake.”

Some customers said they were changed to another long-distance company even after they told telephone salespeople they did not want to switch. Others said they were switched without notification and did not find out until they got their telephone bills.

Market leader AT&T;, MCI, Sprint and other long-distance companies have been in fierce competition since the breakup of AT&T; five years ago.

AT&T; has 70% of the nation’s long-distance phone market, MCI 15% and Sprint 10%. Smaller companies control the remaining share of the market.

Under terms of the breakup, customers are allowed to choose the long-distance service they want and are billed through their local telephone company.

AT&T; has a multimillion-dollar advertising campaign urging those who changed to another company to switch back to AT&T.;