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MCI Asks California to Lower Fees

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(Bloomberg News)

MCI Communications Corp. asked California regulators to lower the fees that local phone companies charge to start and finish long-distance calls within the state. The Washington-based long-distance company said the so-called access fees charged by dominant local phone service providers Pacific Bell and GTE cost residents and businesses $375 million a year. MCI made the request in a filing with the California Public Utilities Commission in San Francisco. A hearing isn’t expected for several months. The move comes as the Federal Communications Commission seems likely to delay its rules ending access fees for calls between states. Those rules had been expected May 8. “Access prices have to be at cost before they [Pacific Bell] can move into the long-distance market,” said Dick Severy, MCI director of regulatory and governmental affairs. Pacific Bell defended its fees.

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