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Reports that AT&T submitted a proposal that would give telephone users more flexibility in seeking to save money on some long-distance calls. Reaction to the proposal by consumer groups and United States federal regulators; Tactics planned to be employed to lower cost, including eliminating a monthly fee for low-volume callers, and a wider variety of calling options; Statement by William E. Kennard, chairman of the Federal Communications Commission, that he was encouraged by the plan.

Discusses the spring 2000 announcement of AT&T that rates of most long-distance accounts will be raised. Complaints of consumer groups that feel misled by previous announcements of rate cuts by AT&T and the United States Federal Communications Commission (FCC); Lack of concern by the FCC about AT&T plans to raise rates; How the action benefits other long-distance companies.

Focuses on the decision of the United States Federal Communications Commission (FCC) and leading telephone companies to lower long-distance telephone rates. Rate cuts which will be most beneficial to those who use make few long-distance calls; Questions about consumers actually receiving the promised savings; Reasons for the agreement.