intra-LATA telecommunications (both local and toll calling) are the responsibility of the local exchange carriers (LECs). Private telecommunications networks, which serve only specific customers rather than offering services to the public at large, are not regulated as common carriers. Since most U.S. long distance carriers are judged not to possess market power, they are not subject to FCC regulation. The largest company, AT&T, is subject to price-cap regulation, and in some business markets, where the FCC has determined that AT&T lacks market power, its services are subject to streamlined regulation under which its tariffs are presumed lawful and need not be justified by cost support materials. The FCC allows unlimited resale of long distance facilities and services, although the degree of intrastate resale competition varies from state to state. Local telephone services are provided by about 1,325 local telephone companies (telcos), including 22 local Bell Operating Companies (BOCs), telcos owned by GTE, Sprint (United Telecom and Centel franchises), and independent local telephone companies. Many of these small, local companies operate as rural telephone cooperatives. Long distance service is provided by AT&T, MCI, Sprint, WilTel, Metro media Communications, Litel Telecommunications, Allnet, and more than 475 smaller carriers. http://www.isoc.org/HMP/PLENARY/L1-6/html/paper.html Telephone service continues to be a valuable and cost-effective service for American consumers and businesses. During the last several years, local service rates have been increasing at a slower rate than overall inflation. During 1992, the consumer price index (CPI) rose 2.9 percent for all goods and services. By contrast, the CPI for local services rose 0.5 percent, while the CPI for intrastate toll services declined 2.4 percent and interstate toll services declined 1.3 percent. As of late 1992, average monthly residential rates for a single party...
