December 26, 2004 08:24 AM
Phone-Network Leasing Rules Eased
Excerpt: The Federal Communications Commission on Wednesday approved rules that limit the extent to which competitors can use the networks of the local Bell phone companies to reach their own customers.
The Federal Communications Commission on Wednesday approved rules that limit the extent to which competitors can use the networks of the local Bell phone companies to reach their own customers.
The agency's commissioners voted 3-2, with the panel's two Democrats dissenting.
As expected, the FCC decided that the Bells do not have to lease access to their switches -- expensive devices that direct communications traffic -- to rivals seeking to serve the mass consumer market.
Verizon Communications (VZ: news, chart, profile), SBC Communications (SBC: news, chart, profile), BellSouth (BLS: news, chart, profile) and Qwest Communications International (Q: news, chart, profile) are the nation's four so-called Baby Bells -- a term commonly used for local-exchange carriers in the aftermath of the breakup of AT&T more than 20 years ago.
Companies that use the Bells' switches now will have 12 months to find other means to serve those customers. See here for more details
Similarly, the agency loosened a requirement forcing the Bells to lease parts of their network -- known as transport and high-capacity loops -- that cater to small and medium-sized businesses.
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