You Say Rate Hike, We Say PhilanthropyMissoula Intercarrier Compensation Plan ( old news - 09:31AM Wednesday Jan 31 2007) tags: prices · fcc · business · telcoAccording to telco critic Bruce Kushnick, the FCC is working on a plan, drafted largely by AT&T, aimed at raising the fees you pay on your landlines and broadband connections. Dubbed the "Missoula Intercarrier Compensation Plan," the proposal would raise the FCC line charge on your phone bill from $6.50 to $10, increase the amount users pay into the USF and add additional charges to your landline and broadband connection. "The FCC hasn't made these points clear to customers because in the light of day, outside the Washington DC Beltway, if the FCC had called the plan 'Raise phone rates,' someone might notice," says Kushnick. According to AT&T, the plan (pdf) is just the opposite. It's a proposal that 350 carriers have signed off on after "months of vigorous debate and discussion" aimed at creating reasonable intercarrier compensation rates. The plan would divide carriers into three categories, depending on their size, and then allocate funds accordingly. AT&T says the plan will reduce consumer prices, protect low income consumers, improve the USF, increase competition and facilitate innovation. Related:- Wednesday Evening Links
- Thursday Morning Links
- Thursday Evening Links
- Friday Evening Links
- Monday Evening Links
- 'Intercarrier Compensation Reform' Means Higher Rates
- Wednesday Evening Links
- Friday Evening Links
|
 old_wiz_60
join:2005-06-03 Bedford, MA | Rate Hike for sure The day this rate hike leads to lower consumer prices will be the day pigs fly and water flows uphill. The telcos are in business to make money by any legal or quasi-legal means. The only place to get money is from subscribers. | |
|  |  |  |  |   kyramilan
join:2006-11-26 Pensacola, FL | Re: AT&T's analysis of new plan vs current methods So Urban users get $14.00 less and the rest get to pay for the Urban high users???
The FCC can kiss my a**!!! | |
|  |  tmc8080
join:2004-04-24 Floral Park, NY
| Re: Rate Hike for sure Sure it will lead to lower prices... from plain old telephone landlines to VOIP... cuts that nasty REGRESSIVE fcc line charge to "ZERO", NOTHING, NADA.. It will speed telcos entry into VOIP like mad, because it will cut a main artery leading to consumer's wallets provided they see the light at the end of the tunnel and switch providers to a cheap VOIP company and say NO MORE to the 3 largest telcos in the country!!
Adding fees to broadband is silly, since they enacted a law banning taxes/surcharges for access. Either way, this will come bite them in the ass later on.. Oh, by the way.. what happened to getting more money from the corporate ELITE in this country... taxing them like paupers B'Yatch! It's time for the pendulum to start swinging back!! | |
|  |  |  dynodb Premium,VIP join:2004-04-21 Minneapolis, MN
| Re: Rate Hike for sure said by tmc8080 :Oh, by the way.. what happened to getting more money from the corporate ELITE in this country... taxing them like paupers B'Yatch! It's time for the pendulum to start swinging back!! At around 39%, corporate tax rates in the US are among the highest in the Industrialized World: »www.taxfoundation.org/news/show/1466.html
And know where they get the money to pay those taxes? YOU, B'Yatch! | |
|  |  |  |  tmc8080
join:2004-04-24 Floral Park, NY
| Re: Rate Hike for sure Telling half the story or your SPIN on that 39% rate is like saying the OIL companies have a vested interest non-commoditizible fuels.. Tell the whole story, where the actual effective rates paid are half or less for MOST CORPORATE ELITE... how they screw and the taxpayer & customers are almost beside the point.. there aren't much products and services that the top corporations that can't be done by small business with the exception of: medical/drugs fuel/power military contractors banking
You can find other examples... in the economy. The time has come for the middle class who pay the bills to get a break! Simply making things more expensive solves nothing. | |
|  |  |  |   kyramilan
join:2006-11-26 Pensacola, FL
| said by dynodb :said by tmc8080 :Oh, by the way.. what happened to getting more money from the corporate ELITE in this country... taxing them like paupers B'Yatch! It's time for the pendulum to start swinging back!! At around 39%, corporate tax rates in the US are among the highest in the Industrialized World: » www.taxfoundation.org/news/show/1466.htmlAnd know where they get the money to pay those taxes? YOU, B'Yatch! Baloney! Corporate tax rates after breaks and everything else they screw a state and city for is about 15-20%. | |
|  EasyDoesIt
join:2005-04-12
| Is it ever going to end? AT&T says the plan will reduce consumer prices, protect low income consumers, improve the USF, increase competition, and facilitate innovation.
If this isn't complete and utter nonsense, I don't know what is! The thumb screws keep getting tighter and tighter. Are people ever going to wake up and demand an end to garbage such as this? | |
|  |   Matt Take me down to the paradise city Premium join:2003-07-20 Jamestown, NC
·North State Commun..
| Re: Is it ever going to end? said by EasyDoesIt :AT&T says the plan will reduce consumer prices, protect low income consumers, improve the USF, increase competition, and facilitate innovation.If this isn't complete and utter nonsense, I don't know what is! The thumb screws keep getting tighter and tighter. Are people ever going to wake up and demand an end to garbage such as this? I did, by dropping all AT&T (Bellsouth) products. -- Use the OS tool for the job. | |
|   vpoko Premium join:2003-07-03 Jamaica Plain, MA
| Does everything increase competition? "Increase competition" or "give consumers more choices" are among the most meaningless buzzwords coming out of Washington. If they think the fee is necessary then say it, but don't make it sound like you're doing us a favor.
Kinda reminds me of the part in "1984" (the book, not the year) where they cut the chocolate ration, but immediately celebrated it as an "increase" in the ration. | |
|  |  nasadude
join:2001-10-05 Rockville, MD
·Comcast
| Re: Does everything increase competition? does everything the FCC does increase competition?
ABSOLUTELY!
The FCC must use all it's might (smoke and mirrors) to provide a shimmering vision of competition, or else the 1996 Telecom Act requires them to actually do something.
The FCC doesn't want to actually tell Congress to go fvk itself, so they pretend and that's why we get stuff like:
* BPL press releases every couple of months or so, despite absolutely no large successful deployments;
* misleading broadband penetration statistics (the old zip code dodge);
* statements that the ATT/Bellsouth merger will result in more competition (despite clear evidence to the contrary).
If the FCC stops pretending, their whole rationale comes crashing down. Maybe the Democrats will do something about this - the Republicans have sure been easy to fool.
there is a hearing tomorrow on the FCC by the Senate Commerce, Transportation and Science Committee; should be fun. | |
|  |  |  RayW Premium join:2001-09-01 Layton, UT clubs:
·XMission
| Re: Does everything increase competition? said by nasadude :If the FCC stops pretending, their whole rationale comes crashing down. Maybe the Democrats will do something about this - the Republicans have sure been easy to fool. Did not in 90's under the clintons, will not in the 2000's under Bush, won't when hillary gets back in in 2009.
Unless you have a lot more money than the people paying for what the FCC is doing. -- I am not lost, I find myself every time. | |
|   kamm
join:2001-02-14 Brooklyn, NY
·T-Mobile US
| #!: disband this rotten, totally corrupt FCC Titles says it all. There's nothing to reform when the supposed oversight agency is totally corrupted, its board represents nothing but battling corporate interests and led by a crony, an active agent of certain industry lobby (and his own pocket, of course).
FCC and any relevant regulation is completely broken in this country, for long years now.
Time for a fresh start, dump all these corrupt, arrogant FCC 'officers', keep the engineers and create something new, something that works and has minimal interest in bias (ie take away the chance they could go to work for these regulated indutries after leaving office etc). --
| |
|   ansar Search for HighSpeed
join:2004-12-10 Utica, MS
·Alltel Axess
| Tax Incentives not Tax Increases Come on. I think Tax Incentives would be more beneficial to getting decent internet connections to the masses better than Tax Increases. All I see Tax Increases doing is pumping more money into the government where you will probably never know where it goes. | |
|   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ
·Sprint Broadband D..
| Ahem... Where are the usual BBR respondents who seem to think that everything done by the telcos, every lack of service delivery, every lack of upgrade of service, every modernization to bring broadband in line with the level of services seen in other countries, just EVERYTHING they do is proof positive of the invisible hand of Adam Smith, produced and directed by Ayn Rand and Her Race of Socio-Economic Ubermenschen?
[crickets]
Of course, while they construct and disseminate arguments against broadband being called a utility(Oh, that would smack of the worst in that great evil, socialism! Gasp! Cue rending of garments and beatings of breasts!), the telcos are constructing new slush fund sugartits from which to suckle.
Constructed of 100% virgin astroturf? I leave it to the gentle reader to decide. | |
|  |  dynodb Premium,VIP join:2004-04-21 Minneapolis, MN
1 edit | Re: Ahem... LOL, nice one.
BBR: Making Out Of Molehills, Served Fresh Daily.
This is simply an AT&T proposal being discussed, and deals mostly with interconnection compensation between carriers. Yawn.
Given that Verizon and Qwest oppose the plan as do the wireless companies (except Cingular of course) and cable providers among many others, it's unlikely it'll be adopted without significant changes.
The rest of you, feel free to continue with the knee-jerk paranoid hyperbole.
EDIT: While I don't agree with TScheisskopf, at least his rant was funny. | |
|  dynodb Premium,VIP join:2004-04-21 Minneapolis, MN
| Drafted by the Baby Bells? Of the many signatories to this, nearly all are rural CLECs. The only Baby Bells that sign onto this are AT&T and SBC; it's a bit misleading to suggest that it was drafted "largely by the Baby Bells" when this appears to be strictly an AT&T proposal. Verizon and Qwest (among others) are on record opposing it. | |
|  |   T1 Rocky
join:2002-11-15 Dallas, TX | is netneutrality covered in that epic? Whoa that document is too big to read. It smelled like there was som e netneutrality in there or was that me misinterpreting it? | |
|  |  hottboiinnc ME
join:2003-10-15 Cleveland, OH 1 edit | Re: Drafted by the Baby Bells? well not 2 baby bells but 1 now. AT&T owners of both Cingular and BellSouth. They should have changed the entire name to Cingular and say The Only One You Need. | |
|  |  Zoder
join:2002-04-16 Miami, FL | Exactly. Out of all the big players in the country. AT&T, Verizon, Sprint, Quest, and T-mobile. Only AT&T supports this. Why is that? | |
|   Rob In Deo speramus, God Bless the USA Premium join:2001-08-25 Kendall, FL | Time for Tea? What are they smoking? | |
|  hoyleysox
join:2003-11-07 Long Beach, CA
·Cox HSI
·Time Warner Cable
| Why would the telco's lobby to raise their taxes (& prices) I dont' understand Bruce's argument about a telco conspiracy to raise telco taxes. It does not make sense for a business to lobby to raise taxes on the product they sell.
The cigarette companies certainly don't like the government raising taxes on their product and I am surprised that the telco's would want taxes on DSL, especially since they are trying to compete with cable on price.
I am sure that Bruce is leaving some salient details out of his story (as usual)... Yawn. 911 conspiracy theories seem more thought out than Kushnik's. | |
|  |  bigjimc
join:2003-04-21 Middleboro, MA
| Re: Why would the telco's lobby to raise their taxes (& prices) It's the same reason the ALF CIO lobbies for a minimum wage increase. It raises the floor thus making it seem like you are paying less (be it per hour for union workers or per month for phone service). In the case of the phone companies they get that money on the back side.
Cigarette companies would welcome a $0.25 per pack federal tax on their product if it was going back to them on the back side. Even if they only got $0.19 back. In the case of cigarettes, you have an addicted user base that needs the product no matter what you charge. Sounds like the data/phone user. | |
|  |  |  hoyleysox
join:2003-11-07 Long Beach, CA | Re: Why would the telco's lobby to raise their taxes (& prices) I am suprised at Bruce's argument as I would be if Marlboro (the telco) lobbied to impose taxes on its own cigarettes, but said that Camel (the cable companies) should not have to pay the same tax. That would never happen. | |
|  |   Karl Bode News Guy join:2000-03-02
Host: Road Runner PC gaming GAMES PC gaming Tech
| quote: I dont' understand Bruce's argument about a telco conspiracy to raise telco taxes.
The FCC line charge isn't a tax, that money heads back to the phone company. USF technically isn't a tax either, and nobody really knows where that money goes since how it's actually spent isn't tracked well. | |
|  |  |  hoyleysox
join:2003-11-07 Long Beach, CA
·Cox HSI
·Time Warner Cable
| Re: Why would the telco's lobby to raise their taxes (& prices) Ok. I'll call it a fee, not a tax. Whatever you call it, the government mandates that the telco's have to add a fee to the phone bill. It still artificially raises the price like a sales tax and lowers demand.
I don't understand why telco's would lobby to lower the demand for their services and not the telco's.
This site is extremely critical about any actions taken by telcos, but does not question Kushnik's conspiracy filled rants. It is weird to me because Kushnik's bias does not make him seem like a credible or objective person. | |
|  |  |  |   Karl Bode News Guy join:2000-03-02
Host: Road Runner PC gaming GAMES PC gaming Tech
| Re: Why would the telco's lobby to raise their taxes (& prices) quote: Ok. I'll call it a fee, not a tax. Whatever you call it, the government mandates that the telco's have to add a fee to the phone bill. It still artificially raises the price like a sales tax and lowers demand.
Not necessarily, because the advertised price remains the same. | |
|  |  |  |  |   Matt Take me down to the paradise city Premium join:2003-07-20 Jamestown, NC
·North State Commun..
| Re: Why would the telco's lobby to raise their taxes (& prices) said by Karl Bode : quote: Ok. I'll call it a fee, not a tax. Whatever you call it, the government mandates that the telco's have to add a fee to the phone bill. It still artificially raises the price like a sales tax and lowers demand.
Not necessarily, because the advertised price remains the same. Exactly, and the Telco's can point at the FCC, pout and say, See, they made us!", all the while laughing because the money goes straight into their pocket. -- Use the OS tool for the job. | |
|  |  |  |  Zoder
join:2002-04-16 Miami, FL
| Not exactly. The FCC allows the phone companies to charge the intercarrier compensation fee and they can charge any amount up to $6.50 for the first line. They are not required to charge it though.
Basically phone companies charge each other for connecting to each others networks. The fee allows them to recoup these costs as a line item surcharge instead of making it just a cost of doing business.
The plan is to lower intercarrier fees and to make up for the "lost revenue" increase the subscriber line charge. So theoretically if you subscribe to services where your provider pays alot of intercarrier fees. Such as wireless and long distance, those rates should come down if the provider passes the savings on to you. But you'll be paying for it with higher rates on your local phone bill through the higher "FCC line charge" So poorer customers who only buy local service but aren't poor enough to qualify for lifeline, get screwed. | |
|  |  dynodb Premium,VIP join:2004-04-21 Minneapolis, MN
| What I found most amusing was the fact that he described the actual proposal as "impossible to understand, even for experts".
Yes, it's highly technical and full of industry jargon, but why even consider his criticism regarding a proposal he himself apparently doesn't understand?
Given that AT&T's proposal is nowhere near a done deal, faces opposition by other influential companies and that the actual impact to consumers (if any) isn't clear, Kushnik's knee-jerk caterwauling shouldn't be taken too seriously. | |
|   xerxes3642
join:2006-02-24 Saint Charles, MO | it will increase competition so that AT&T can buy them up. | |
|   nixen Rockin' the Boxen Premium join:2002-10-04 Alexandria, VA | Double-speak Lives Black is white. War is peace. Fee increases mean lower bills.
-tom | |
|   Matt Take me down to the paradise city Premium join:2003-07-20 Jamestown, NC | Dry? Jesus, is the ink even dry on the Bellsouth purchase yet?
They didn't wait very long to attempt to raise rates. So much for "This will allows us to compete and lower pricing" ... -- Use the OS tool for the job. | |
|   BF69
join:2004-07-28 Camden, TN
| Raising rates REDUCES prices? BRILLIANT! | |
|   n2jtx
join:2001-01-13 Glen Head, NY
·Optimum Online
| Drop The Line Charge... ...and the rest looks good to go.
Basically this is alot of BS. The TELCO's are just making another money grab. Hopefully the new Congress would intercede BUT they have to be paid off too. -- I support the right to keep and arm bears. | |
|  bignolan
join:2007-01-31 Fort Lauderdale, FL
| AT&T Rate Hike Yep all a bunch of malarkey!
The figures used in the proposal do not accurate reflect the bills in all states.
Don't count on congress to fix it, they won't, when will they repeal the tax to fund the Spanish-American war??? they won't.
In order to fix the problem, it must be lobbied against, at congress, the fcc, the ftc, and the state PSC's..
The Line access fees are optional and not required, they are additional profit fees | |
|  | |  |
|
|