How AT&T, Verizon And The Telecom Giants Have Captured the Regulator Supposed To Control Them

In a recent AlterNet article, we detailed how the Federal Communications Commission (FCC) helped increase the “FCC Line Charge” (SLC), now capped at $6.50 per line, that is imposed on every residential and business phone line. It is a charge that is usually hidden among the “taxes and surcharges” section of the phone bill. It does not go to fund the FCC, but is a direct subsidy to phone companies.

However, the full story of the role AT&T, Verizon and others played in the FCC’s deliberations establishing the SLC has yet to be told. It is a model of what is known as “regulatory capture,” the process by which a federal or state regulatory or other government agency becomes too cozy with those it is charged to oversee.

In 2000, the phone companies created a campaign known as CALLS (Coalition for Affordable Local and Long Distance Service) to raise fees. It is the model of how these companies, their astroturf shills, co-opted consumer groups, corporate-funded research firms, federal bureaucrats and politicians worked together to effectively take control of the FCC’s agenda and create a massive marketing campaign to fool the public.

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