TITLE

The Competition Conundrum

PUB. DATE
January 2005
SOURCE
Business Communications Review;Jan2005, Vol. 35 Issue 1, p4
SOURCE TYPE
Trade Publication
DOC. TYPE
Editorial
ABSTRACT
The article reports that the regional bell operating companies (RBOCs) had a wonderful time due to the U.S. Federal Communication Commission (FCC). In it's new unbundling rules, issued in mid-December, the FCC effectively closed the book on eight years of attempted deregulation of the local telephone loop, issuing new rules that make it almost prohibitively difficult for competitors to use unbundled network elements to offer services that compete with the RBOCs. Particularly distressing is the discussion of RBOC special access, that is, high-speed circuit pricing, and the FCC's apparent indifference to the situation. The RBOCs earn an average 43.7 percent rate of return on special access, compared with an authorized level of 11.25 percent. The Ad Hoc committee--along with AT&T Corp., it must be pointed out--is pushing for rates to be lowered accordingly, but the Commission seems to have sat on the matter until forced by the federal courts to at least promise action of some sort.
ACCESSION #
15739312

 

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