Editorial: Carriers snooker phone regulators

Sunday, June 11, 2000 | 9:51 a.m.

Slightly more than one week ago the Federal Communications Commission announced that customers who make few long-distance phone calls could see savings as high as 50 percent. Why? The regulators agreed to reduce by $3.2 billion the "access fees" that local phone companies were charging long-distance phone companies to connect their calls. Since these charges in the past have been borne by consumers, the FCC received assurances from the long-distance carriers that they would pass on the new savings to their customers. But just days after getting these access charges wiped out, AT&T filed an application with the FCC that would allow the company to raise its rates for basic service, potentially wiping out any savings for customers.

Only after a public outcry did AT&T retreat the next day and withdraw its proposed increase. AT&T's initial action still is troubling, though, especially since it came on the heels of a $3.5 million fine against long-distance phone company WorldCom for slamming -- switching a customer's long-distance carrier without his consent. Some of these companies act as if the days of the Wild West are still with us. Federal regulators should make it crystal clear that deception will not be tolerated -- unless they want the phone companies to view them as patsies.

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