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FCC opens phone market
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November 25, 1997: 1:19 p.m. ET
Agency votes unanimously to allow overseas firms access to U.S. market
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NEW YORK (CNNfn) - The Federal Communications Commission voted unanimously to allow international companies to enter the $200 billion telecommunications market in the U.S.
At a press briefing in Washington, the agency told reporters the five members of the FCC voted to implement the historic World Trade Organization trade agreement reached in February calling for liberalization of the global marketplace. Effective Jan. 1, the U.S. will be the first country to implement the pact.
"Increased competition will benefit American consumers by producing lower prices, greater service choice and innovation," said FCC Chairman William Kennard.
Regulators hope the move will lower the costs of international calls for U.S. consumers by up to 80 percent.
American consumers on average pay about 88 cents a minute for an international call, or more than six times the cost of the average domestic long-distance call. But the actual costs of providing the two services are nearly equal.
Regulators also hope the measures eventually will give American companies more access to markets overseas. However, reciprocity no longer will be a condition to an international company's entry.
Under the new rules, a company such as British Telecommunications PLC that wants to offer phone service or invest in an American carrier will get the benefit of the doubt that its home market will be open to U.S. competitors.
The FCC rules also make it easier for foreign carriers and satellite operators to offer international phone and data services from U.S. shores, either through investing in U.S. companies or setting up their own facilities here.
Other regulators, though, such as the State and Defense departments, still may block entry based on the grounds of "national security."
-- from staff and wire reports
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