AT&T; Sues Pac Bell, PUC Over Phone Fees

AT&T; Corp. sued Pacific Bell and the California Public Utilities Commission over fees it’s been ordered to pay the Baby Bell to compete in the state’s local phone market. AT&T; claims an arbitration decision made by the PUC last month unfairly forces it to pay access charges to Pac Bell for phone lines it leases or will lease from the local phone company. The suit also claims AT&T; is being unfairly blocked from buying local phone service at volume discounts from Pac Bell. The suit, filed in U.S. District Court in San Francisco, seeks a ruling prohibiting the PUC from enforcing the rules. Executives of San Francisco-based Pacific Telesis Group, Pacific Bell’s parent, weren’t immediately available for comment.