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Lawmaker Asks FCC to Probe AT&T; Rate Hike

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Rep. John D. Dingell (D-Mich.) has asked federal regulators to investigate whether AT&T; Corp. is “padding its pockets” after the long-distance giant this week hiked some of its phone fees.

AT&T; announced last month that it would raise a key long-distance fee it charges all customers to 11.5% from 9.9% of their monthly bill on Jan. 1.

AT&T;, and most other carriers, collects money on behalf of the Federal Communications Commission that goes toward a fund that subsidizes phone service for schools, libraries and in rural and inner city areas.

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But Dingell charged in his letter that the FCC does not vigorously oversee the subsidy program. He asked the agency to perform an investigation of the books and records of AT&T; to determine whether the company in fact has collected more from its customers for the subsidy fund than AT&T; has paid the government.

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Jube Shiver Jr.

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