For Whom The Bells Toll

Are you getting the short end of the long-distance stick?
Magazine Contributor
1 min read

This story appears in the May 1998 issue of Entrepreneur. Subscribe »

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."

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur