AT&T Asks State Corporation Commission to Reconsider Order That Would Hinder Long Distance Rate Reductions

Existing Order Would Keep Long Distance Rates Too High; Would Obligate Consumers Statewide to Subsidize Embarq Telephone Company

RICHMOND, Va., June 15 /PRNewswire-FirstCall/ — AT&T* today announced that it has filed a motion asking the Virginia State Corporation Commission (SCC) to reconsider a May 29 order that will keep prices for all in-state long distance calls too high, and that will obligate telephone customers across the Commonwealth to subsidize the Embarq Telephone Co. by at least $23 million this year, and nearly as much in subsequent years.

The case involves the regulatory “access fees” Embarq charges other telephone companies to originate and terminate in-state long distance calls to Embarq customers. In its filing, AT&T is asking the SCC to reduce Embarq’s access fees by at least $23 million per year, the same way it reduced Verizon’s access fees in 2005.

According to AT&T’s filing, unless the Commission modifies its May 29 Order consumers all across Virginia will be paying at least $23 million too much for their long distance calls, just to subsidize Embarq, a company that serves less than 10 percent of Virginia’s telephone lines.

“Ultimately, Embarq’s high access rates are not an AT&T problem, or a Sprint problem, or a Verizon problem,” says Mark A. Keffer, AT&T General Attorney & Associate General Counsel, Northeast Regulatory. “Rather, this is a consumer problem; a problem for every consumer in Virginia who is paying too much to make traditional in-state long distance calls, no matter where they live, and no matter which carrier they use.”

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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