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AT&T Deal with Regional Giants Suggests It Would Rather 'Switch' than Fight.
Byline: Martha McKay
Apr. 30--AT&T offered a cease-fire Thursday in its battle with local phone companies over wholesale rates.
At issue is how much AT&T pays Verizon and other regional Bell operating companies to lease parts of their networks.
The rates have been at the center of legal and regulatory disputes since passage of the 1996 federal Telecommunications Act, which attempted to open the local phone market to competition.
AT&T said Thursday it wants to move away from dependency on the Bell networks and install its own equipment.
The company said it would increase what it pays Verizon to lease part of the network called the switch -- an expensive computerized piece of equipment -- in exchange for easier and cheaper access to the "local loop," or the copper wire leading into homes and most small businesses. A higher price paid to lease switches will give AT&T a self-imposed incentive to speed installation of its own switches, the company said.
"This is a huge paradigm shift away from business as usual," AT&T CEO David Dorman said in a statement.
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