Getting Out the Vote on Phone Rates
While U.S. citizens line up at the polls Tuesday, a far smaller, but almost as contentious vote will be held at the Federal Communications Commission.
The vote concerns intercarrier compensation, the complex system in which phone companies charge each other for connecting long-distance calls. The largest carriers, such as AT&T and Verizon, support the changes, but rural telecoms like Embarq and Windstream stand to lose money if rates are cut. That could prompt higher consumer phone bills, as the companies are forced to offset lost revenue.
Journal reporters Fawn Johnson and Amy Schatz reported Friday that some FCC commissioners want to delay the Election Day vote and that there’s pressure on FCC Chairman Kevin Martin to put the proposed plan out for public comment.
Meanwhile, opposition to the plan continues to grow. Today six more Senators — Chuck Hagel (R, Neb.), Patrick Leahy (D, Vt.), Bernard Sanders (I, Vt.), George Voinovich (R, Ohio), Byron Dorgan (D, N.D.) and Robert Casey (D, Pa.) — sent letters to the FCC asking for the vote to be postponed. They join dozens of other lawmakers and an assortment of consumer groups that range from the AARP to the American Farm Bureau Federation in their concerns, particularly for rural consumers who could bear the brunt of a phone-bill increase.
In a statement, Sen. Hagel expressed concern on the timing of the vote and a “compressed deliberative period”:
“While I agree that the government must address these important issues, I am concerned that the process has been hasty and opaque. These proposals will have large effects on both consumers and industry, yet many stakeholders have not had the opportunity to comment on the specific proposal. The FCC should not rush to a conclusion based on insufficient information, and inadequate record, and a compressed deliberative period. Moreover, I am concerned that these important issues are being brought up at a time when Congress is unable to conduct its usual oversight role.”
UPDATE: The FCC cancels its vote. In a statement, four FCC commissioners said: “We approached this proceeding with the common goal of modernizing our universal service and intercarrier compensation policies, and commend the desire to tackle some of the most important issues facing this Commission. It is equally important to ensure that any reform proposal receive the full benefit of public notice and comment — especially in light of the difficult economic circumstances currently facing our nation.”
- Andrew LaVallee
Source: WSJ.com: Business Technology