AT&T can begin disconnecting phone service for low-income customers who buy pre-paid service through a third-party reseller that hasn't paid its bills to AT&T, state regulators said today.

The N.C. Utilities Commission gave AT&T the go-ahead to disconnect customers served by Freedom Communications, also known as Tennessee Telephone Service. Freedom filed for bankruptcy in August and has just nine customers left in this state.

Freedom is one of seven companies AT&T has been trying to collect millions of dollars in unpaid bills. Freedom owes AT&T $2.9 million in nine Southeastern states, including North Carolina

State regulators moved closer to letting AT&T end service for thousands of low-income customers if their phone company, LifeConnex Telecom, doesn't pay AT&T nearly $1.4 million in bills.

The N.C. Utilities Commission said LifeConnex, based in Wisconsin, has five days to pay AT&T. If LifeConnex doesn't meet the deadline, "AT&T is authorized to resume the process of suspending and/or terminating its service to LifeConnex."

LifeConnex is one of seven phone companies that AT&T is trying to collect money from. But two others — EveryCall Communications and Freedom Communications — have filed for bankruptcy. In July, LifeConnex had 8,800 customers in North Carolina.