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 FCC NEWS

FEDERAL COMMUNICATIONS COMMISSION
445 12th STREET S.W.
WASHINGTON, D.C. 20554

News media information 202/418-0500
TTY 202/418-2555
Fax-On-Demand 202/418-2830
Internet http://www.fcc.gov
ftp://ftp.fcc.gov
This is an unofficial announcement of Commission Action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 516 F 2d 385 (D.C. Circ 1974)

FOR IMMEDIATE RELEASE
 May 30, 2001
 NEWS MEDIA CONTACT:
 John Winston (202) 418-7450
Jwinston@fcc.gov



COMMISSION HOLDS THAT ACCESS RATES CHARGED BY
COMPETITIVE LOCAL CARRIER ARE UNLAWFULLY HIGH

Washington, DC - The Commission today announced that the rates charged by a competitive local exchange carrier (CLEC) for switched access to and from the telephone lines of its end-user customers were unlawfully high under section 201(b) of the Communications Act of 1934 (Act). The Order released today resolves two formal complaints filed by long distance carriers AT&T Corp. and Sprint Communications Company against Business Telecom, Inc. (BTI), a CLEC based in Raleigh, North Carolina. AT&T and Sprint filed their complaints pursuant to primary jurisdiction referrals from the U.S. District Court for the Eastern District of Virginia.

During 1998, 1999, and 2000, BTI charged AT&T and Sprint approximately 7.2 cents per minute for switched access services, pursuant to tariffs that BTI filed with the Commission. Comparing this rate to the rates charged by BTI for similar services, the average access rates of other carriers and the access rates charged by the incumbent local exchange carriers serving the areas in which BTI operates, the Commission determined that BTI's 7.2 cents per minute rate was unlawfully high. For purposes of calculating the damages sustained by AT&T and Sprint as a result of the overcharges, the Commission determined that the highest lawful rates that BTI could have charged during the relevant time period are as follows:

  • July 1, 1998 through June 30, 1999
    		• 3.8 cents per minute
  • July 1, 1999 through June 30, 2000
    		• 3.0 cents per minute
  • July 1, 2000 through May 30, 2001
    		• 2.7 cents per minute.

    The Commission's Order addresses BTI's past charges for switched access, based solely on the record presented by the parties to the proceeding. The access rates that BTI and other CLECs may lawfully charge in the future are the subject of the Commission's April 27, 2001 CLEC Access Charge Order.

    Action by the Commission, May 25, 2001, by Order (FCC 01-185). Chairman Powell, Commissioners Ness and Tristani. Commissioner Furchtgott-Roth dissenting and issuing a separate statement.

    Enforcement Bureau Contacts: John Winston at (202) 418-7450 or Anthony J. DeLaurentis at (202) 418-0198.