The US Federal Communications Commission issued its proposals to open up the $100bn local phone business to long-distance companies and cable television operators, the first step to end the century-old local phone monopoly controlled by the seven regional Baby Bells and a handful of other companies. The Commission still has to fill in many details in its 99-page plan but it aims to spark competition in the once-heavily regulated communications business and drive down rates for phones, cable- television, pagers, Internet access and other services. The Bells had argued against uniform rules, but long-distance carriers such as AT&T Corp and MCI Communications Corp want detailed rules that leave a local phone company with less room to negotiate a new competitor’s entry into the local market. MCI said it was encouraged by the Commission’s proposal to open the market, which should be finalized by August 8.
