Phone rates criticized

September 13, 1991|By New York Times News Service

WASHINGTON -- The General Accounting Office said yesterdaythat the federal government's main contract to buy long-distance telephone service will force it to pay $148 million above commerciallyavailable rates over the next two years.

But AT&T, one of the two principal contractors, denounced the conclusion by the congressional watchdog agency and said it was based on questionable data.

At issue is what is known as the FTS 2000 contract, in which the government buys most of its long-distance services from either the American Telephone & Telegraph Co. or US Sprint Communications Co.

L The contract is expected to total $25 billion over 10 years.

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