ATT <T> SUPPORTS FCC PLAN ON PRICE CEILINGS
American Telephone and Telegraph Co
said it supported the Federal Communications Commission's (FCC)
plan to establish price ceilings for ATT long-distance services
as a replacement for current regulation.
    The company was responding to an FCC proposal of August 4
that price caps replace the current rate-of-return regulation,
which has been in place for the past 20 years.
   
    ATT said vigorous competition in the long-distance industry
has made obsolete rate-of-return, which stipulates that a
company can earn no more than a fixed rate -- currently 12.2
pct -- on its investment.
    The company termed the price cap a "transitional step," and
said it hoped the FCC would support a program of regulatory
oversight, which would consist of a streamlined tariff process.
  
 Reuter
