AT&T; to Boost Rent on Most Home Phones

NEW YORK — American Telephone & Telegraph is raising the rents for most of its residential telephones for the first time since it agreed to a two-year ceiling on rates following its breakup on Jan. 1, 1984.

The increases could affect nearly half of the nation’s households as well as some small businesses that are lumped into the residential category, AT&T; spokesman Burke Stinson said.

The new rates are being phased in across the country from the beginning of this year through the end of the summer, Stinson said. Once they take effect, they will not change for two years, he said.

AT&T; is raising the rates “to remain competitive and enhance our phone profitability,” Stinson said.

Don’t Affect Purchases

The increases do not affect the purchase of phones. Despite increasing competition, AT&T; says it remains the biggest supplier of telephones for both sale and rent. The company declined for competitive reasons to say how many phones are affected by the increase.

AT&T; agreed with the Federal Communications Commission not to impose an across-the-board increase in phone rental rates for residential customers for two years after it was divested of the regional Bell operating companies.

AT&T; increased rental rates in some areas to bring them in line with a national average, as permitted by the FCC. This is the first time the company has been free to charge what it wants.

The Trimline Touch-Tone phone, which AT&T; says is its most popular model, is excluded from the rental increases.