Long-Distance Runaround, Part II: AT&T Backs Off

In an unusual turn of events, AT&T actually backed off its stated plans to raise the rates on its basic plans–this in response to the “dissatisfaction” of FCC regulators, according to Reuters. (Click here to read an earlier “Moneybox” on the rate hike.) Apparently the regulators became dissatisfied some time after speaking to the New York Times on Tuesday, or the Times recorded their dissatisfaction as something that sounded a good deal more like indifference. In any case, if the FCC deserved to be chided for praising regulation one week and figuring that the market would sort things out the next, then it deserves praise for coming around to a more consistent line–which clearly had tangible and practically instant effects. What the shareholders will make of all this is, of course, another matter…