AT&T; blasted a California PUC report.
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The long-distance telephone company said a Public Utilities Commission staff recommendation that AT&T;’s rates be cut by $74.2 million was “astounding.” The PUC issued its report in response to a company request for a $123.6-million rate increase late last year. AT&T; said it lost $11 million in 1984 and 1985 on long-distance operations in California because of stiff competition. The PUC staff, on the other hand, said long-distance competition in California was virtually non-existent.
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