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...aims at getting an 8% return whenever it can. It has to negotiate constantly not only with the FCC but with local commissions in the 48 states in which it operates (all except Alaska and Hawaii). In 47 of them, A.T.&T. hammers out local phone rates with state commissions, but in Texas it has to dicker with no fewer than 1,500 town councils. Rates vary widely, depending upon how much money A.T. & T. has invested in an area, how many numbers residents can call without paying a toll and what the local commission will allow. When commissions agree...
...General Services Administration, representing the Government as a user in regulatory hearings, has recommended that Bell's return should be limited to 6.6%, and the staff of the Federal Communications Commission, which regulates the Bell System and its interstate rates, has suggested 6.5%. So far, the FCC's seven commissioners have refused to go along with this recommendation...
Breaks for the Little. Last year the FCC forced the company to reduce some of its long-distance rates, so that anyone can now call anywhere in the continental U.S. after 9 p.m. for no more than $1 for the first three min utes. Two months ago, the FCC hit from the other side: it ordered A.T.&T. to raise rates on its "cheaper-by-the-dozen" Telpak service, which transmits printed as well
Until recently, A.T. & T. had limited its own ambitions to the transatlantic phone business. But last October, petitioning the FCC for permission to lay the fourth cable, A.T. & T. also asked to offer a combined voice and print service. The smaller companies howled, accused "Mother Bell" of monopolistic designs...
Shifting Pattern. The FCC decision permitted A.T. & T. to build its fourth cable-with Germany and France as junior partners-but also ordered that Mother Bell's competitors be given the opportunity to buy (not just lease) a part of it. Even more disconcerting to A.T. & T. was the implication in last week's decision that the Government wants to help out the company's smaller competitors. Some of Mother Bell's supporters feared that Washington might place so many restrictions on A.T. & T.'s combined voice-data communications service in the U.S. that...