The FCC regulates rates and practices of local and long distance telephone companies.
Since 1913, when AT&T agreed to operate as a monopoly guided by federal oversight, the Federal Communications Commission (FCC) has overseen telephone service in the United States. As the network grew, so did the regulations enacted to ensure fair pricing and equal access to all Americans without stifling the industry's ability to grow and evolve while still allowing competition in the market.
Universal Access
When local telephone companies began springing up in the late 19th and early 20th centuries, they concentrated on areas with high population densities. These areas allowed companies access to a large subscriber base with minimal network setup and maintenance charges; however, providing telephone service to remote areas with few households wasn't deemed cost-effective. With federal oversight came the mandate that AT&T had to provide basic telephone service to all households.
Subscriber Line Charge
All bills for land lines include an item for subscriber line charges, sometimes listed as a federal access fee. This recurring fee is regulated by the FCC and allows telephone companies to recoup the costs involved with providing access to all households. The FCC regulates these charges and, as of July 2010, required them to be under $6.50 a month. This charge varies by region and telephone company, and helps subsidize the cost of universal access.
Common Carrier
The telephone network created by AT&T and its successors, regional Bell operating companies, is considered a common carrier by the FCC. This common carrier status prevents operators of the Bell network from denying access to the network from competitors, charging unreasonable fees or otherwise providing preferential treatment to favored entities. It also provides the Bell operating entities with legal protection against crimes committed or planned using the telephone system.
Do Not Call Registry
The FCC and the Federal Trade Commission (FTC) enacted the National Do Not Call Registry in 2004 to prevent telephone subscribers from receiving certain types of unwanted calls, including unsolicited telemarketing calls. Home telephone subscribers may request to be placed on the registry to curtail unsolicited calls. Telemarketing companies are required to check the Registry on a monthly basis and remove any names and numbers that have been added to the list from their rolls.
Anti-slamming Rules
The FCC's equal access rules require that consumers be allowed to select their local and long distance telephone provider. Slamming is the practice of switching a consumer's provider without his knowledge or permission, and is illegal. Companies caught slamming are required to repay the original telephone company 150 percent of funds generated by the illegal change.
