Friday, November 2, 2007

When Roman emperors needed to appease the populace, they doled out "bread and circuses." By acting to lower cable TV rates ["FCC Ready to Ban Exclusive Cable Contracts," Business, Oct. 31], the Federal Communications Commission got the circus part right. This distracts the public while the FCC prepares to say no on the more vital issue of competitive telecommunications.

It's a familiar pattern. First the FCC approved the mega-mergers that eliminated MCI and the old AT&T. Now it is helping Verizon stamp out what remains of telecommunications competition.

The FCC will soon decide whether to disconnect millions of East Coast consumers from competitive services. By exercising "regulatory forbearance" in markets from Virginia Beach to Boston, policymakers can erase current rules that require Verizon to keep its wholesale network open to competitors. Companies such as XO need these "last mile" links to deliver economical service.

An FCC misstep will mean higher charges. According to a new study by QSI Consulting, regulatory forbearance would cost consumers roughly an extra $114 per household next year.

The FCC may not be moved by the prospect of higher charges. We can all take solace in cheaper cable TV.

CARL GRIVNER

President and Chief Executive

XO Communications

Reston