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FCC May Phase Out Fees for Connecting Calls.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News, December, 2000 by Phillips, Heather Fleming

Dec. 5--WASHINGTON, D.C.--In a move that could give a boost to the nation's largest local telephone companies, the Federal Communications Commission is considering phasing out billions of dollars in fees local phone companies pay each other to connect calls.

The FCC acknowledged Monday that Chairman William Kennard is circulating his proposal among the four other commissioners. Under the plan, the current system would gradually eliminate the fees over three years, and states would not have to accept the FCC's system if they had an alternative system in place that works.

"This is not a great time to be laying another hit on competitive (phone) carriers and the FCC knows that, and they'd like to cushion the blow," said Paul Glenchur, an analyst with...

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