Local officials in several states have filed dozens of lawsuits saying phone companies, such as AT&T Inc. and Verizon Communications Inc., are doling out discounts to businesses at the expense of 911 emergency services.

Telecom operators are required by local laws to charge a 911 fee, typically about $1 for each phone line to support local 911 dispatch centers, including salaries, training and equipment for call takers. But with heated competition for business customers, phone companies have been undercutting one…

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