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Universal Service killed competition?Congress updated the federal universal service program, which provides subsidies for rural telephone service, rural health care, and Internet connections for schools and libraries, as part of its 1996 Telecommunications Act. The law has been controversial. A joint federal-state advisory panel submitted a host of recommendations for revising the program yesterday, looking to protect rural and low-income callers' service as competition in phone markets heats up.

GOP members of Congress targeted the school and libraries subsidies earlier this year, forcing the FCC to scale back the program, The first round of funding for these groups was released yesterday, But the local Bell telephone companies' complaints run deeper, They say the whole subsidy structure, which goes beyond the federal fund, is unfair and may be undermining the core of the Telecommunications Act, "We feel that this is the primary iphone case 4s amazon issue behind the failure of competition to reach residential customers," GTE's Bishop said..

The logic behind the lawsuit is such: The FCC has allowed new companies to compete in the local telephone markets. But at the same time, regulators force the dominant local companies to serve rural and residential lines at prices near or below cost. Some of the slack is taken up by federal and state subsidies, but the rest is made up as the companies sell more profitable services, largely to business customers. But as competitors cherry-pick the business customers away, the baby Bells and other dominant phone companies say they will be left with the increasingly unsustainable business of serving residential customers.

Long distance companies and smaller local companies dismiss this spin on deregulation's failures, The baby Bells are making it difficult for competitors to enter local markets, they say, So far regulators have agreed with this line of thought, iphone case 4s amazon giving consistently low grades to baby Bell companies' efforts to open markets, The case against the FCC will be heard in federal appeals court in New Orleans on Dec, 1, In a move that may take some pressure off regulators, BellSouth withdraws from a lawsuit challenging the way federal telephone subsidies are governed..

CNET también está disponible en español. Don't show this again. @Home chief executive Tom Jermoluk intends to sell 20,000 shares in the high-speed Internet-over-cable access provider, according to documents filed with the Securities and Exchange Commission. The sale would be worth about $1.3 million, and represents less than 1 percent of Jermoluk's holdings, according to Craig Columbus, vice president at Disclosure, a financial firm that tracks insider trading. Jermoluk also sold 200,000 shares in October, Columbus said. @Home shares are up nearly 25 percent since last week, trading at a new 52-week high.