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FCC 5-0 OKs Phone Access Charge Deregulation

Commissioners 5-0 OK'd an NPRM to deregulate phone tariffing and eliminate interstate access charges on local phone bills (see 2003260043). The vote preceded Tuesday's meeting via teleconference (see 2003310067). The NPRM proposes detariffing subscriber line, access recovery, presubscribed interexchange carrier…

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and line port charges, plus the special access surcharge. It seeks to "explicitly prohibit carriers from assessing any separate telephone access charges on customers' bills after those charges are deregulated and detariffed" because they are difficult to understand, the agency said. Commissioner Mike O'Rielly supports the deregulation, not the plans to prohibit carriers from continuing to list separate access charges on bills. "I find it somewhat strange and ironic to characterize these charges as deceptive, when it was the FCC that established the various access charges and all of their confusing terminology in the first place, and the item proposes to continue to use the charges as proxies for calculating rate-of-return carriers' Universal Service Fund support," he wrote. O'Rielly said it should be up to the carriers to determine how to itemize and describe charges: "It's not clear to me how forcing carriers to bury these costs in their rates, rather than providing discretion to itemize them, will ultimately provide better transparency." The FCC “today recognized the market for voice services has changed substantially since 1996, including the reality that ILECs are no longer a monopoly provider," said USTelecom Vice President-Strategic Initiatives and Partnerships Mike Saperstein. "This was an appropriate step by the commission to permit incumbent providers to price services in a way that reflects today’s competitive marketplace.” NTCA is waiting to see the NPRM.