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AT&T; Seeks Rate Hikes on Card, Operator Calls : Telecom: Request comes amid push by regional phone companies to provide long-distance service.

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From Associated Press

AT&T; Corp., having just received federal approval to increase monthly long-distance rates, is seeking to raise other rates, including those for calling cards and operator-handled calls.

The plan, filed Wednesday with the Federal Communications Commission, would generate $259 million in additional revenue for the telecommunications firm.

The plan would affect far fewer callers than a rate increase for monthly long-distance service that went into effect Dec. 16, Joseph Nacchio, president of AT&T;’s Consumer Communications Services unit, said in an interview. He said exact figures were not available.

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AT&T; spokesman Jim McGann said inflation and increased costs of providing the services are prompting the request for higher rates. If approved, they will take effect Jan. 10.

Regional phone companies trying to get into the long-distance business contend that AT&T;’s plan underscores the need for more competition in the $60-billion-a-year industry.

All seven regional phone companies say they will work together to persuade Congress to let them into the long-distance market.

The plan also comes at a time when AT&T; and rival MCI are in an advertising war over whose rates are lower. MCI, which requested an increase in its monthly rates, declined to comment. Sprint had no comment.

Under AT&T;’s proposed pricing, domestic calling card and operator-handled calls would go up 3.8%.

Direct-dial calls from the United States to some foreign countries would increase 1.3%, and monthly subscription fees for some of the carrier’s domestic rate-savings plans would increase 2.4%.

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The most popular savings plans, True USA and True World, will not be affected because they don’t charge subscription fees, McGann said.

Among the affected plans are Any Hour Saver, in which the $10 monthly subscription would rise to $10.75, and Reach Out 24 Hour, in which the fee would go from $8.70 to $9.50, McGann said.

On Dec. 16, AT&T; increased monthly long-distance rates about 35 cents per customer, generating about $274 million in additional revenue annually.

The new pricing request also seeks to increase rates an average 5% for USA Direct Service calls.

That service allows a person in another country to place a call into the United States using a U.S. operator.

The proposed increase would apply to 27 countries.

AT&T; pledged not to increase basic long-distance rates for domestic calls in 1995.

While the pledge is not legally binding, Nacchio said: “If we make a pledge we will keep it. . . . We’re not going to violate our customers’ trust.”

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