Baby Bells See Rivals Taking Fewer Phones &lt;p&gt;\&lt;/p&gt;&lt;p&gt; By Justin Hyde&lt;/p&gt;&lt;p&gt; WASHINGTON (Reuters) - Three of the nation's dominant local\telephone companies said on Thursday that they had seen a sharp\drop-off in new residential lines leased to competitors since\AT T Corp. &lt;T.N&gt; announced a retreat from residential service\in July due to changing federal rules.&lt;/p&gt;