FCC Plans to Erase Key Rule On Local Phone Competition

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: "the terminal of Geoff Goodfellow" <geoff () iconia com>
Date: Mon, 6 Jan 2003 09:59:51 +0100
To: "Dave E-mail Pamphleteer Farber" <farber () cis upenn edu>
Subject: FCC Plans to Erase Key Rule On Local Phone Competition

FCC Plans to Erase Key Rule
On Local Phone Competition

By YOCHI J. DREAZEN and SHAWN YOUNG
Staff Reporters of THE WALL STREET JOURNAL

WASHINGTON -- Federal regulators are preparing to stop making local phone
companies rent their networks to rivals at cheap rates, a move that could
reduce competition and price-cutting in the local phone market.

The expected change by the Federal Communications Commission would be a huge
win for the four regional Bell companies, which are trying to continue their
domination of the profitable local market. It could be a significant setback
for their biggest competitors, the two already beaten-down long-distance
giants, AT&T Corp. and WorldCom Inc., who have struggled to make inroads
into local phone service.

The revisions to the rules would be the most drastic change to the nation's
telecommunications laws since Congress passed the Telecommunications Act of
1996, which was predicated on allowing the Bells and the long-distance
companies to enter each other's markets. The move would essentially undo the
FCC's key rules intended to make it easier for new providers of local
service, including long-distance companies, to compete with the Bells.
Instead, the plan would force them to pay higher prices to rent network
access or buy more of their own equipment.

--snip--

http://online.wsj.com/article/0,,SB10418076588657184,00.html

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geoff.goodfellow () iconia com * Prague - CZ * telephone +420 603 706 558
"success is getting what you want & happiness is wanting what you get"
http://www.nytimes.com/library/tech/99/01/biztech/articles/17drop.html
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