The out-of-court consent agreement to divest AT&T has become a sensitive issue for the consumer as well as for the employees of the Bell System. All rental phones remained the property of AT&T and are no longer the responsibility of local phone companies. Rends will be paid to AT&T, while the actual phone bill is paid to the local companies. This presents a confusing situation for the consumer. AT&T has also continued to advertise the fact that the changes will result in lower long distance rates. Local service charges, however, are expected to skyrocket. Also, competition for the long distance services will be fierce, as rivals such as HCI, OTE's SPIRIT, and ITT's City Call attempt to gain market share. This thesis will examine both the reasons behind the break-up of AT&T and its impact on long distance and local rates for the average residential consumer in Cumberland County
