AT&T; Plans to Reduce Rates

WASHINGTON — American Telephone & Telegraph Co. proposed today to lower its interstate long-distance rates by an average of 3.6% to reflect reduced expenses.

The largest decrease--6.3%--would be seen in daytime prices “because of the need to make those rates more competitive,” AT&T; said. Rates for calls made during evening hours would drop 2.2% and those for calls made during the late night and weekends would be cut by 0.8%, the company said. The rate reductions will take effect Jan. 1 if they are approved by the Federal Communications Commission.