August 17, 2004

Closed shop

From Forbes:

A proposal backed by a coalition of telephone carriers would cut billions of dollars in fees owed by long-distance companies to regional phone giants but would allow the regional companies to make up some of the difference by raising monthly phone bills for millions of consumers. […]

At the heart of the proposal is a plan to do away with billions of dollars in so-called access charges, which long-distance companies such as MCI must pay regional companies such as Verizon to connect their customers to the local network. In return for giving up those payments from long-distance companies, the regional phone companies will be allowed to raise basic phone rates over the next several years.

From Dictionary.com:

cartel n. A combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members.

Posted by Martin Geddes at 05:27 PM
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Tracked on August 18, 2004 12:02 AM

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Tracked on August 18, 2004 11:51 PM
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