WASHINGTON-An appeals court last week told the Federal Communications Commission it could impose a cut in access charges but that it must review its rules regarding access charges before April 1, 2000.
Long-distance carriers pay local exchange carriers to connect calls. These payments, known as access charges, are calculated using a complicated formula that was struck down by the same court last month. The U.S. Court of Appeals for the District of Columbia Circuit said the FCC has until April to justify its new formula but until then the planned reductions could go forward.
“This stay is good news for consumers … Long-distance companies will see huge reductions in access charges effective July 1. If long-distance companies pass these savings along to their customers, consumers will see a half billion dollars in long-distance savings,” said FCC Chairman William Kennard.
The FCC used its planned reductions in access reforms to support its increase in the amount telecommunications carriers pay to help connect schools, libraries and rural health centers to the Internet. Since wireless carriers do not pay access charges, their increase of 42 percent to pay for the E-rate is not helped by the appeals court decision.
