Complain about a product or service

FCC Phases Out Discounts for Local Phone Competitors

December 15, 2004
The Federal Communications Commission is phasing out the discounts big regional telephone companies are required to offer to local competitors. That's likely to further discourage local competition by AT&T, MCI and others.

The commission's decision gives the competitors 12 months to either build their own local networks or work out new leasing deals with the regional companies -- Verizon, SBC, BellSouth and Qwest.

In some cases, the regional companies will still be required to provide discounted rates to competitors serving small and medium-sized businesses but in larger markets network access to the smaller competitors would eventually be eliminated.

For years, the FCC has tried to impose competition in local phone services by requiring the big regional companies to lease space to their competitors at below-market rates. The regional companies have challenged the rules, saying that if competitors want to enter the marketplace, they should have to build their own networks, not get a subsidized ride on someone else's.

The courts have sided with the regional companies in three separate cases, most recently last March when an appeals court in Washington, D.C., threw out the FCC's leasing rules.

Critics say the elimination of the subsidies will stifle competition, but FCC Chairman Michael Powell said new competitors will use wireless, cable television, electricity lines and other channels to provide service to customers.

"Competition and choice for consumers in the information age will continue to grow and thrive," Powell said.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.