ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, December 25, 1996 TAG: 9612260045
SECTION: BUSINESS PAGE: B-8 EDITION: HOLIDAY
DATELINE: WASHINGTON
SOURCE: Associated Press
The government prescribed safeguards Tuesday designed to protect phone customers and companies as the Baby Bells enter new businesses, including making phone equipment and providing long-distance service.
The Federal Communications Commission's rules for regional phone companies are part of a broad telecommunications law enacted Feb. 8 that frees local, long-distance and cable companies to compete on each other's turf.
In unrelated action, the FCC, as expected, unveiled its so-called access reform proposal which offers two broad options for cutting the $23 billion in fees local phone companies collect for handling long-distance calls.
The FCC expects to make a final decision in April or May. Its action could increase local phone bills and decrease long-distance ones.
Under the safeguards order, the FCC said local phone companies must form separate affiliates to conduct businesses such as making phones and other telecommunication equipment, providing long-distance service, or transmitting stock quotes and other information.
The requirement to create separate affiliates for manufacturing and long-distance are set to expire in three years, and the one on information services in four years, unless the commission extends them.
In a related order, the FCC said Bell companies must follow existing accounting standards for all these new businesses.
Early next year, Bell companies are expected to begin applying to the FCC to provide long-distance service to their own customers.
Both FCC orders are designed to protect local phone customers from being forced to pay, through higher rates, for a Bell company's entry into new businesses.
LENGTH: Short : 41 linesby CNB