AT&T; Asks FCC to End Network Fees

AT&T; Corp., the largest U.S. long-distance telephone company, asked federal regulators to eliminate fees that U.S. local phone companies charge other carriers to use their local networks.

Companies such as Verizon Communications Inc. and BellSouth Corp. charged AT&T; and rivals $5 billion in such fees last year, AT&T; said. AT&T; then passes along that cost to its customers.

The FCC allowed local phone companies to charge the fees because it anticipated more competition for local phone services, AT&T; said. A series of bankruptcies among smaller local phone companies has resulted in less competition, AT&T; said.

Shares of New York-based AT&T; rose 67 cents to $12.60 on the NYSE.