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FCC delays controversial vote

by on04 November 2008

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Can’t make up its mind



The U.S. Federal Communications Commission is postponing a controversial vote on how phone companies pay each other for long-distance calls that cross their networks.

Yesterday, the Commission was expected to vote Tuesday on a proposal spearheaded by Chairman Kevin Martin that would have drastically changed the system. But on Monday, the FCC pulled the item from its agenda, which means a vote on these highly controversial issues will be delayed. The four Commissioners are asking to reopen public discussion on several proposals, with the hope that the item can be brought up again at the FCC's December 18 meeting.

Martin was miffed, saying that the FCC will miss the opportunity for comprehensive reform. He wanted to fix what is called intercarrier compensation which is how much carriers charge each other different rates for connecting long-distance calls. Some operators charge less than a cent a call while others,  charge much more than that.

 

The Federal Communications Commission is postponing a controversial vote on how phone companies pay each other for long-distance calls that cross their networks.

Yesterday, the Commission was expected to vote Tuesday on a proposal spearheaded by Chairman Kevin Martin that would have drastically changed the system. But on Monday, the FCC pulled the item from its agenda, which means a vote on these highly controversial issues will be delayed. The four Commissioners are asking to reopen public discussion on several proposals, with the hope that the item can be brought up again at the FCC's December 18 meeting.

Martin was miffed, saying that the FCC will miss the opportunity for comprehensive reform. He wanted to fix what is called intercarrier compensation which is how much carriers charge each other different rates for connecting long-distance calls. Some operators charge less than a cent a call while others,  charge much more than that.

Smaller rural based telcos are opposed to the move because it would have meant they would have lost a lot of cash.

Martin proposed allowing these carriers to make up the difference by charging customers as much as $1.50 more a month for residential service and $2.50 a month more for business customers.

However, the moves were seen as benefiting larger carriers such as AT&T, Verizon Communications, and Qwest Communications International.

Last modified on 06 November 2008
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