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Battling Telephone Companies In Preliminary Agreement On Access Fees: Page 2 of 3

The myriad of issues to be addressed includes the resolution of universal phone service supported by the Universal Service Fund that provides service primarily in rural areas. Access fees are due to increase so sharply that AT&T and MCI are taking steps to vacate consumer markets entirely. The Forum's proposal -- neither public yet nor submitted to the FCC -- is said to pave the way for an increase in monthly phone charges.

"AT&T and MCI and Sprint -- (long distance providers) -- are most desperate to get something enacted," said Wilson, who also noted that SBC, the lone RBOC participant in the Forum has been the most aggressive RBOC in rolling out long distance.

Traditional telephone companies are also being pressured by the spread of cell phones and VoIP, Wilson said. Neither cell phone providers nor VoIP firms are required to contribute to the universal fund, he added.

Other members of the Intercarrier Compensation Forum include Sprint, General Communication Inc., Global Crossing North America, Iowa Telecom, Level 3 Communications, and Valor Communications LLC. BellSouth and Verizon withdrew from Forum talks in May.

The Washington Post reported that the Forum intends to submit its proposal to the FCC within two weeks. Preliminary pieces of the proposal that have leaked out have caused the FCC to be hopeful while consumer groups have been negative, particularly over the prospect that telephone charges to consumers are slated to increase in the proposal.