AT&T rate changes halted by FCC

The Federal Communications Commission yesterday halted a plan by AT&T to raise prices for other telecoms to use access lines it owns into businesses, something other business-to-business carriers had called a rate hike that abused AT&T's market position.

AT&T wanted to make the rate increase effective today, but the FCC suspended it for five months while it investigates further, noting that there is widespread opposition. This move does not prevent the price increase in perpetuity but makes it possible that the FCC could at least soften the blow a bit.

"We find that there are substantial questions regarding the lawfulness of AT&T's tariff revisions that require further investigation," the FCC concluded in its order issued Monday.

"We continue to meet with our customers in a good-faith effort to address their needs. As the transition to more robust and efficient Internet-based network and services moves forward, we will remain flexible in attempting to meet their needs," an AT&T spokesman said in a written statement.

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