FCC tailors regulation to fit NYNEX's unique competitive market.WASHINGTON--(BUSINESS WIRE)--May 4, 1995--NYNEX received approval today from the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. (FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. ) on key elements of the company's Universal Service Preservation Plan (USPP USPP United States Park Police (National Park Service) USPP United States Pacifist Party USPP Utility Service Protection Plan USPP Universal Service Preservation Plan (Nynex) ), a unique plan that will allow NYNEX NYNEX New York-New England & X for the Unknown (Telephone Company) NYNEX New York Network Exchange to restructure interstate switched access prices. The plan will enhance NYNEX's competitiveness in the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of market by granting NYNEX the flexibility to lower interstate switched access prices, while continuing support for NYNEX's universal service commitments through a new flat-rate monthly charge to long distance carriers. Interstate switched access is the service NYNEX provides to long distance companies for connection to its public switched network. "Today's decision is a victory for NYNEX and our customers. The FCC's action gives NYNEX the flexibility it needs to restructure interstate switched access prices and, therefore, compete more effectively in that market," said Frank Gumper, vice president of federal regulatory planning for NYNEX. "The FCC should be commended for its understanding of the evolving telecommunications industry and its recognition that competition already exists today in the NYNEX marketplace." The high concentration of telephone usage combined with a progressive regulatory climate regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. make the NYNEX region the most desirable communications market in the country. The FCC's decision will allow NYNEX to lower per minute rates for usage sensitive switched access service in the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. metropolitan area, NYNEX's most competitive market. Although initially limited to the metropolitan New York area, NYNEX expects the competitive condition to rapidly qualify other areas in the region. "NYNEX's Universal Service Preservation Plan is a transitional plan designed to address the very complex problem of how a local exchange carrier can compete in the competitive access market while ensuring residential basic telephone service remains affordable. Until legislators, regulators and the industry can put a new universal service mechanism in place, the USPP is a step torward dealing with this challenge," noted Gumper. NYNEX filed its plan with the FCC on Dec. 15, 1993. CONTACT: Jamie DePeau, 202/336-7825 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion