TELECOMMUNICATIONS

MCI, AT&T; Say Pac Bell, GTE Overstated Rural Subsidy Need: In filings with the California Public Utilities Commission, the long-distance companies argued that Pacific Bell, the main unit of San Francisco-based Pacific Telesis Group, and GTE California, a unit of Stamford, Conn.-based GTE Corp., don’t need most of the $1.7-billion universal service fund they are seeking to provide local phone service in remote areas. The long-distance companies said MCI Communications Corp. and AT&T--California;’s two dominant local phone companies--would use the fund to subsidize construction of additional phone lines for urban customers who want fax machines, computer lines or video entertainment services. The commission is to decide the issue later this year.