WASHINGTON, Aug 20 (Reuters) - U.S. communications regulators on
Friday issued interim rules that would freeze for six months wholesale
rates for leasing access to the major U.S. local telephone networks
to try to preserve competition.
The Federal Communications Commission had required the four major
local telephone carriers, known as the Baby Bells, to lease network
access to rivals at government-set rates in order to promote
competition for local service, but an appeals court in March threw out
the rules.
The FCC has been trying to draft new regulations and in the interim
ordered the Bells to keep the rates at the present prices while final
rules are hashed out. The Bells had argued the prices were below cost
and have sought to eliminate them.
After the first six months, if final regulations have not been set,
the FCC said lease rates for existing customers could rise as much as
15 percent and new customers would have to negotiate new lease rates
with the Bells.
- http://finance.lycos.com/home/news/story.asp?story=43245933