The price is wrong; FCC prods U.S. carriers to renegotiate overseas long-distance fees

Article Abstract:

The US Federal Communications Commission (FCC) says long-distance service providers like AT&T, MCI Communications Corp and US Sprint Communications Corp must lower rates on international calls or it will reject rate applications. The FCC wants to halve international accounting rates, which can add $1 per minute to the cost of an international phone call. The fees are paid by whatever country initiates the call, but the US faces a substantial increase in payments because the bulk of calls originate in the US. Fees paid to Europe increased 25 percent from 1989 to 1990; fees to South America increased 16 percent and those to the Middle East rose 41 percent. The FCC says the issue could be discussed in international trade policy negotiations unless rates more accurately reflect costs. Developing countries say they need the income to improve their telecommunications infrastructure.

Telecommunications industry, Negotiations, International communication, Price cutting, International Communications, Negotiation, Pricing Policy

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Panel suggests MCI file rates with the FCC

Article Abstract:

A three-judge panel for the U.S. Court of Appeals for the District of Columbia Circuit strikes down a Federal Communications Commission rule that exempted rivals of AT and T in the long-distance telephone service business from filing their rates with the FCC. The panel says that the FCC rule is contrary to the Communications Act, which requires telephone companies to file their rates with the commission for public inspection. The commission has required only AT and T to file because AT and T dominates the long-distance industry. As a result of the ruling, AT and T will be better able to keep tabs on its competitors, and consumers will be better able to compare rivals' rates. The court says that the FCC can reinstate the rule if Congress amends the Communications Act.

Electronic computers, Cases, Long-distance telephone service, American Telephone and Telegraph Co., MCIC, Price, Court Cases

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FCC plans caps for interstate telephone rates; proposal could streamline Baby Bells and others, replace limit on profits

Article Abstract:

The Federal Communications Commission (FCC) plans to impose limits on profits for interstate telephone services provided by local telephone companies and seven Regional Bell Holding Companies. Theoretically, price-caps increase efficiency and keep rates down, but in practise they often encourage companies to raise rates to the highest level allowed. It is for that reason that the price-cap plan for local telephone companies is opposed by consumer groups, corporate users and many congressmen. Comments on the plan from the telecommunications industry and consumer groups will be sought by the FCC in early 1990.

Economic aspects, Telecommunication policy, Telecommunications policy, Regional Bell Operating Companies, Telecommunications, Bell Regional Holding Companies

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