In Pivotal Case, Bush Backs Off Rule That Eased Phone Line Fees

[UpInArms]

http://www.nytimes.com/2004/06/10/business/10PHON.html?ex=1087444800&?en=4e7155c0a048e491&?ei=5062&?partner=GOOGLE

WASHINGTON, June 9 — In a move that critics say could lead to higher telephone rates, the Bush administration on Wednesday sided with the four regional Bell companies in a court case over the fees they charge their rivals for access to their networks.

The administration's decision, which could affect the phone bills of nearly 50 million customers across the country, was a significant policy reversal in a case making its way to the Supreme Court.

<snip>

The solicitor general, on instructions from the White House, dropped out of the case on Wednesday after unsuccessfully trying to defend the regulations in the appeals court. The decision substantially reduces the chances that the Supreme Court will accept the appeal, particularly because the Federal Communications Commission, which had been pressured by the administration, also reversed course and said it had decided not to pursue an appeal either.

<snip>

Mark Cooper, research director of the Consumer Federation of America, said that the elimination of the regulations could ultimately lead to higher rates for 19 million consumers who get phone service from competitors to the Bells and an additional 30 million who have discounts from the Bells in response to competition.

<snip>

The administration's announcement followed fierce lobbying and aggressive tactics; each side has raised millions of dollars in campaign contributions for the president and the Republican Party. Before the decision, rivals of the Bells said they had told the administration that if it did not side with them in the dispute they intended to run television advertisements in swing political states accusing the White House of being responsible for higher telephone rates. For their part, the Bell companies pledged not to raise rates before the election in November.

...more...

[ChompySnack]

1. Flippity

Floppity

As Al Franken would say

[RebelOne]

2. I sure hope the Bells run the TV ads in the swing states

That should get some folks' dander up and maybe lose some votes for the moron.

[UpInArms]

3. related article: FCC Chief to Draft New Phone Share Rules

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=5394470

WASHINGTON (Reuters) - U.S. Federal Communications Commission Chairman Michael Powell said on Thursday he plans to draft new rules for leasing access to the four local telephone carriers' networks after the Bush administration said it would not defend old regulations.

The administration on Wednesday said it would not challenge an appeals court ruling that struck down FCC rules that forced the big local carriers, known as the Baby Bells, to lease access to their networks at government-set rates.

"We will begin immediately," Powell told reporters after the agency's monthly open meeting. "I'm quite optimistic with the new guidance and understanding what our limits are, we'll be relatively expeditious at this."

get ready to not be able to pay your phone bill!

[tom_paine]

4. FCC now exists solely to rob and silence the American People

No other purpose for the institution that started out charged with seeing that a Nazi or Soviet style Media never infected our nation.

They failed.

Now they are part and parcel of the Beast.

[stickdog]

5. So the Bell Companies won the graft auction.

Could the corruption of this administration be any more transparent?