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Long-distance Rates Must Track Access Charges

Fortnightly Magazine - September 15 1996

The North Carolina Utilities Commission (NCUC) has upheld an earlier ruling (issued May 2) that required interexchange carriers (IXCs), on a dollar-for-dollar basis, to reduce rates for basic intrastate message telephone service (MTS) so as to flow through to MTS customers certain reductions in local telephone access charges.

It denied requests by the IXCs to share the rate reductions with all switched-access customers, rather than target the rate cuts to basic toll services only.

According to the commission, a dollar-for-dollar cut in MTS rates would help those residential and business customers with the least market power and least potential to benefit from competition. Re BellSouth Telecommunications, Inc., et al., Dkt. Nos. P-55, Sub 1013 et al., June 25, 1996 (N.C.U.C.).

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