Before the deregulation in telecommunications,AT&T charged higher rates on long-distance service in order to make local service rates lower.Such a practice is an example of

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Cross-subsidization of local phone service refers to using revenue from one service or product to subsidize another service or product. In this case, AT&T charged higher rates for their long-distance service to subsidize their local phone service, which allowed them to keep their local service rates lower.

Before the Deregulation in Telecommunications,AT&T Charged Higher Rates on Long-Distance