FCC Makes the Hard Decisions with Consumers in Mind

Washington, DC – May 31, 2000.  The Telecommunications Research and Action Center, TRAC, applauds the FCC action today reforming the national telephone access charge system. We applaud Chairman Kennard’s leadership in developing the proposal adopted today. This has been among the most difficult and contentious issues for the FCC.  (Former FCC Chairman Reed Hundt called it the “third rail” of telecommunications policy.)  

The following statement can be attributed to Samuel A. Simon, chairman of TRAC’s board of directors:

“These difficult telephone issues always involve compromises.  It is clear that the FCC as a whole, and Chairman Kennard’s office specifically, has insisted that this reform proposal look first at consumers, second at competition and third at the industry interests.  TRAC endorses that approach.  Under the proposal, consumers will enjoy the following benefits:

·        There will be a one-time phone-bill reduction for nearly all-residential consumers, but mainly for low volume users.

·        The public interest obligation of universal service is reaffirmed with a secured system of support for rural and low-income consumers.

·        The access pricing system that has long distance companies pay fees to local companies will be changed to a more flat rated system that is likely to lead to more internet style pricing packages in local and long distance services.

TRAC has recently documented that the cost of long distance service has soared over the last six-months. We hope that with this new system those long distance carriers will now reduce not only their per-minute rates, but also all of the charges and fees for related services that have been skyrocketing the past six-months. The FCC has committed to assuring that the long distance industry savings from reduced access payments are passed through to consumers. TRAC will be monitoring the rates to assure that this is the case.

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