For Whom The Bells Toll
Are you getting the short end of the long-distance stick?
Are major long-distance carriers getting their cake and eating
it, too? It appears so, at least to disgruntled small-business
owners whose monthly long-distance bills have skyrocketed due to
access-charge reform spawned by the Telecommunications Act of 1996
and FCC rulings that took effect January 1. Since we last reported
on the fee hike (see "Business Beat," November 1997), a
backlash has ensued, and the SBA Office of Advocacy is calling on
the FCC to reevaluate key elements of the rulings.
What's behind the uproar? Large companies wielding
high-volume buying power can negotiate lower rates that neutralize
the impact of the surcharges. Meanwhile, small businesses are
bearing the brunt of the reforms, as 60 percent of them don't
seek competitive bids for their long-distance needs, says Eric
Paulak of Gartner Group Inc., a Stamford, Connecticut, information
technology research firm. He adds, "This should serve as a
wakeup call [to small-business owners] to get out there and force
the companies to compete."