USTA Shoots Down AT&T Phone Relief
By Ted Hearn -- Multichannel News, 12/19/2002 9:26:00 AM
The local phone industry is opposing a proposal by AT&T Corp. that calls for regulatory relief for companies that route phone calls over the Internet -- an issue being monitored by cable operators with Internet-protocol-telephony ambitions.
In October, AT&T asked the Federal Communications Commission to exempt Internet-based phone calls from having to pay per-minute access charges that apply to traditional long-distance calls.
On Wednesday, the local phone companies -- which collectively receive billions of dollars in access charges annually from AT&T and other long-distance carriers -- said AT&T's proposal would have "potentially catastrophic consequences" for the sustainability of affordable local phone service everywhere in the country.
Access charges are used to promote universal service, a subsidy program aimed at phone consumers in rural and high-cost areas. The fund also subsidizes poor consumers and Internet connections to schools and libraries.
The regulatory status of IP telephony has been a sleeper issue for the cable industry for several years, and it is expected to take on greater significance as cable-modem providers add voice applications. However, the National Cable & Telecommunications Association did not file initial comments on AT&T's proposal.
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