Tuesday, May 08, 2001

F.C.C. Wants Higher Fines for Phone Monopolies
At a hearing earlier this year, Mr. Powell laid out his philosophy to lawmakers: "I might give you a better benefit of the doubt, but when you cheat, I'm going to hurt and hurt you hard."

The commission is charged with carrying out the 1996 Telecommunications Act, which sought to break up local phone monopolies held by the regional Bells and allow new companies to enter and compete. The act requires the Bells to lease and open up parts of their networks to competitors.

The agency can fine companies that deny rivals access up to $1.2 million for each violation.

For dominant phone companies with multibillion-dollar revenues like the Bells, "this amount is insufficient to punish and to deter violations in many instances," Mr. Powell wrote in a letter to the heads of the Commerce and Appropriations Committees in both houses.

He recommended increasing the amount to $10 million a violation "to enhance the deterrent effect of commission fines."

The commission should be able to award punitive damages, legal fees and costs in formal complaint cases, he wrote.

He also suggested that the statute of limitations on investigating an accusation — currently one year — be extended.
http://www.nytimes.com/2001/05/08/technology/08PHON.html?pagewanted=all

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