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AT&T ordered to cut long-distance rates

The Federal Communications Commission ordered American Telephone and Telegraph (AT&T) Thursday to cut long-distance telephone rates by 6.1 percent. The rate cut, estimated at more than $1.7 billion, is the largest ever ordered by the FCC. It would also apply to Wide Area Telephone Service and is expected to take effect May 25.

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After examining documents filed by AT&T, the FCC found the company overestimated the effects of competition from its long-distance competitors, such as MCI and Sprint, and understated its revenues by $1.71 billion.

''It's a felony to submit false information to a federal agency,'' said Bruce Fein, the commission's general counsel. He suggested ''sanctions'' could be brought against AT&T.

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