U.S. is likely to ease rules on AT&T's long-distance; as a 'nondominant' carrier, it could nimbly change rates, launch discounts

Article Abstract:

The FCC is expected to remove some rules that restrict AT and T's ability to quickly change its residential long-distance telephone service rates, a move that recognizes that AT and T is no longer a dominant service provider. The FCC has regulated AT and T in the long-distance market since before the company's forced breakup in 1984. AT and T was designated a dominant carrier in the market, which gave the FCC the ability to closely regulate the company. Under the regulations, AT and T must file tariffs with the FCC when it wishes to change its rates, a process that can take 45 days or longer. Also, the company must keep its rates within an FCC-designated range. These rules, which are designed to keep AT and T from monopolizing the market, give its rivals a strong competitive advantage in pricing schemes. For example, AT and T was forced to wait 73 days before it could respond to a discount program offered by MCI.

Long Distance Telephone Svc, Telephone communications, exc. radio, AT&T Corp., T, Government Activity

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FCC likely to end rate-tariff filings for long-distance phone companies

Article Abstract:

The FCC proposes an alteration of present rules that would diminish the agency's role in quantifying and assigning appropriate long-distance telephone charges. The FCC is hopeful that long-distance rates will be subjected to increased competition by reversing the current requirement that telephone companies' file rate tariffs with the agency. The FCC's proposed actions are aligned with the Feb 1996 passage of the Telecommunications Act and an increased industry desire for completely open competition. The FCC will still be charged with ensuring that rural and isolated geographic regions are presented with affordable long-distance access, but it will have to do so without the aid of rate tariff filings.

Telephone Communication, Telephone Communications, Government trade agreement and tariff regulation, Telephone services

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