http://www.latimes.com/business/la-fi-fcc17aug17.story Bell Foes Seek FCC Relief
Chairman Powell faces pressure from investors and the White House to amend rules on local phone competition.
By James S. Granelli
Times Staff Writer
August 17, 2004
Three weeks after winning unusually swift approval of stopgap telephone competition rules, Federal Communications Commission Chairman Michael K. Powell is under pressure to change key elements in an effort to help the companies that compete with the Baby Bells.
The temporary rules — which haven't yet gone into effect — would govern the extent to which the Bells must share their equipment with rivals. The FCC approved them to fill a void created this year when a federal appeals court threw out regulations that were designed to spur competition in local phone service — and were credited with saving residential and business customers $16 billion a year.
Under the interim rules, companies such as SBC Communications Inc. and Verizon Communications Inc., two of the regional Bells that emerged after the breakup of onetime giant AT&T Corp., would be required to freeze the wholesale lease rates they offer to competitors for six months.
If final rules weren't adopted by then, the Bells would be able to impose limited rate hikes covering their rivals' existing customers and raise prices dramatically for new customers.
Powell has told colleagues that he wants to amend the interim rules to allow providers of high-speed Internet access to ride the Bells' lines into homes, and to keep fast, high-capacity business lines available to Bell competitors at low prices. Rivals serve 29% of the small-business community in major metropolitan areas.
The Bush administration, and investors that have poured billions of dollars into the rivals, are urging the chairman to provide some relief for competitors.<snip>
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
