Telecom talks at trade body are postponed as U.S. balks

Article Abstract:

The World Trade Organization encounters a setback as the US rescinds its offer of complete free access to the American telecommunications market. European participants in the body, which consists of 53 nations and is designed to regulate international commerce, claim that the US decision reflects a protectionist attitude brought about by election-year politics. The US says that other countries are not making comparable offers, and it will not agree to unfavorable terms. The trade body saved the current round of negotiations by extending the deadline for an agreement to Feb 1997, but it still maintains its broader goal of having all participants open telecommunications markets to foreign competition by Jan 1, 1998. The telecommunications market is worth $500 billion worldwide, and a deal had almost been reached before the US decided to withdraw satellite communications and international services from its offer of free access.

Government trade agreement and tariff regulation, International communication, International communications

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A phone fee quirk benefits new providers; F.C.C. may intercede as Bells pay dearly

Article Abstract:

New companies providing local telecommunications services have been making money by charging fees to established communications providers under a regulatory loophole known as 'reciprocal compensation.' The rule derives from deals negotiated between new local phone companies and incumbents, involving costs for local calls. Originally, incumbents held out for slightly higher rates, believing that proportionally more traffic would move from new carriers' small customer bases to incumbents' larger ones. In that circumstance, money would have been made by the incumbents. But new companies have focused their attentions on Internet service providers (ISP), which handle mostly incoming calls. Consequently, Bell companies and GTE have found themselves paying out hundreds of millions of dollars a year. By the end of Oct 1998, the FCC is expected to begin considering a regulatory remedy.

United States, Government regulation, United States. Federal Communications Commission, Science and technology policy, Regional Bell Operating Companies, Local telephone services, Local telephone service

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Global talks covering phones near deadline

Article Abstract:

The World Trade Organization is nearing a self-imposed Apr 30, 1996, deadline for the formulation of an agreement that would liberalize trade in the telecommunications industry. The plan would open domestic telecommunications markets to foreign competition, but could endanger many of the less efficient national telephone companies. These fears have jeopardized the negotiations, which include representatives from 51 countries. The US has led the way, offering in Feb 1996 to open its telecommunications markets to foreign competition if other countries follow suit. Thirty-eight of the participating governments have made such offers, but they vary in quality. The increased competition in these markets is expected to result in improved telecommunications services and lower costs for consumers.

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