U.S. FCC issues rate freeze for phone networks

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: August 20, 2004 7:18:50 PM EDT
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] U.S. FCC issues rate freeze for phone networks
Reply-To: dewayne () warpspeed com



[Note:  This item comes from reader Monty Solomon.  DLH]

From: Monty Solomon <monty () roscom com>
Date: August 20, 2004 3:39:53 PM PDT
Subject: U.S. FCC issues rate freeze for phone networks


     UPDATE 1-U.S. FCC issues rate freeze for phone networks
     - Aug 20, 2004 06:26 PM (Reuters)

(Adds details, comments)


WASHINGTON, Aug 20 (Reuters) - U.S. communications
regulators on Friday issued interim rules that would freeze for
six months wholesale rates for leasing access to the major U.S.
local telephone networks to try to preserve competition.


The Federal Communications Commission had required the four
major local telephone carriers, known as the Baby Bells, to
lease network access to rivals at government-set rates in order
to promote competition for local service, but an appeals court
in March threw out the rules.


The FCC has been trying to draft new regulations and in the
interim ordered the Bells to keep the rates at the present
prices while final rules are hashed out. The Bells had argued
the prices were below cost and have sought to eliminate them.


After the first six months, if final regulations have not
been set, the FCC said lease rates for existing customers could
rise as much as 15 percent and new customers would have to
negotiate new lease rates with the Bells.

....

     - <http://finance.lycos.com/home/news/story.asp?story=43245933>



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