Up & Down Phone Rates

Posted: December 01, 1988

WASHINGTON — Local telephone rates are going up today, and AT&T's long-distance prices are going down, soon to be followed by those of rivals US Sprint Communications Co. and MCI Communications Corp.

This script has been replayed several times in recent years as part of an effort by federal regulators to shift the costs of the local phone network to subscribers from long-distance users.

For about half of all subscribers, long-distance price cuts of 38 percent since 1984 have more than offset the rise in local rates, according to the Federal Communications Commission. Those in the other half, however, don't call long-distance enough to benefit, so their overall bill has been higher.

Beginning today, subscribers will see another 60 cents added to their monthly local phone bill, and American Telephone & Telegraph Co. will drop its basic interstate long-distance rates by an average of 3.8 percent.

US Sprint said it will drop its rates an average 3.85 percent on Jan. 1, slightly more for residential than for business services. MCI expects to

announce details of a price cut next month.

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