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January 19, 1994


By CBR Staff Writer

The US Federal Communications Commission has modified its price cap regulatory system for local telephone companies so as to limit the ability of local exchange carriers to offset lower rates for services subject to competition with higher rates for less competitive services; it has also launched a comprehensive review of its price cap plan for the local carriers, but says its changes preserve some flexibility enabling the local carriers to compete more fully in the increasingly competitive transport and special access markets; transport services now come under a combined basket that covers both transport and special access services, and expects the changes to result in lower access charges and lower long distance rates for customers.

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