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Monday, January 10, 2011

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.

GO HERE to read more.

3 comments:

  1. No way, Obama is antibusiness and wants a gov. takeover of everything. No way these companies have any real sway.

    ReplyDelete
  2. What about the electric company? there's a 191 dollar DELIVERY charge on our bill .(we live in the middle of town)
    Let's see that regulated!

    ReplyDelete
  3. how come cell phones aren't manufactured here, in this country? NONE ARE!

    ReplyDelete

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