Small Local Telephone Providers Accuse AT&T of Predatory Pricing

In a Northern District of Texas case, local telephone providers are accusing AT&T of seeking to drive them out of business by refusing to permit new customers of the competitors to receive the $50 rebate that AT&T provides to its own new customers.  In the past, AT&T had made this rebate available to all new landline telephone customers whether they were direct AT&T customers or the customers of competitors who purchase service at wholesale from AT&T.  The competitors allege that AT&T’s policy would force them to price below cost, which they cannot do.

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