USTA PRESIDENT SEES CONGRESSIONAL PRESSURE TO REDIRECT FCC
The FCC's failure to resolve universal service, reciprocal compensation, Bell company entry into long distance or development of advanced networks makes it likely that Congress will restrict agency funds, U.S. Telephone Association President Roy Neel said. Neel said he expects lawmakers to use the FCC reauthorization bill to cut funding for some activities or more strictly direct the agency.
Briefing reporters on progress during the past year, Neel also hinted that the Clinton administration might join Congress in supporting steps to redirect how the FCC carries out its responsibilities. He also criticized the Federal-State Joint Board for failing to send a recommendation on universal service.
While critical of the FCC, Neel praised Chairman William Kennard and encouraged him to change course on the key issues, especially universal service and reciprocal compensation. Neel gave the Commission a "D" grade, but noted that the agency was improving from the previous commission that he said failed in its efforts to carry out the Telecom Act. Neel expressed annoyance that while key proceedings to resolve the cross-subsidy issue remain unsettled, the Commission has set out to "represcribing" rate-of-return for smaller carriers -- a move he called "nonsensical."
CONSUMER GROUPS BLAST U S WEST FOR 'POOR, TERRIBLE' SERVICE
Consumer groups in five U S West (USW) states said the Bell company provides "generally poor, at times terrible" service and urged regulators to develop minimum service standards for residential customers. The U S West Territory Consumer Watch group issued a report in Seattle that documented service in 14 states, focusing on installation, repairs and customer service. "In many respects, U S West provides its customers with inferior quality of service," the report concluded.
Public interest and citizen groups in Arizona, Colorado, Minnesota, Oregon and Washington compiled the 34-page report listing deficiencies state-by-state. The group said USW, which faced similar complaints from regulators in 1995, has not improved its service. The group cited "untimely installation of service, missed and untimely repairs and unsatisfactory access to customer service centers." Existing penalties for poor service are insufficient, the group said, and the company "can basically shrug them off." State rules also have "no correlation" to rapid changes in the industry, the group added. In its recommendations, the 5-state group urged regulators to: (1) Devise and enforce minimum standards. (2) Set specific fines for failure to comply with the standards. (3) Make the reports public. (4) Open local markets to competition. The group urged USW to drop its "excessive administrative battles" with state regulators over service quality standards. The group concluded that the lack of local competition has contributed to the poor service.
A company spokesman noted that a bitter strike by the Communications Workers of America in August contributed to more delays than usual this year and those backlogs are still being cleared. "It's too bad these groups are not focusing on what we see as the real problem, the refusal of competitors like AT&T and MCI to service residential customers," said David Biegge, a company spokesman.
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