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In approving a stipulated rate increase of $7.5 million for NYNEX for local exchange telephone service, the Vermont Public Service Board (PSB) nevertheless has cited several unanswered issues, including: 1) stranded investment in copper-loop facilities, 2) expenses for corporate restructuring and downsizing, and
3) improvements to network infrastructure in the state.
The PSB added that NYNEX had failed to take advantage of falling local-exchange access charges
(a primary reason for the current hike in local service rates) to cut its long-distance calling rates. It described such pricing behavior as "less consistent with effective competition than with price leadership among a limited number of competitors."
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