08/25/97 THE FCC SPARKS A GLOBAL HISSY FIT

08/25/97 THE FCC SPARKS A GLOBAL HISSY FIT

U.S. CALLERS COULD BE in line to save some money when the Federal Communications Commission approves rules to lower international calling rates, expected as early as August 7. But not everyone is smiling.
Many nations--including Italy, Japan, Australia, Trinidad-Tobago, and Latvia, to name a few--are criticizing the FCC for its unilateral action. These countries insist that phone charges should be set by the International Telecommunication Union in Geneva. This multinational regulatory body, however, has dragged its feet on the subject, frustrating FCC chief Reed Hundt.
So the feds put the process in motion last December with a proposed rule to lower carrier-to-carrier rates from 88 cents a minute to between 15 cents and 23 cents. The commission also says that it will block foreign carriers from entering the U.S. market if they don't comply with the lower rates. This has enraged many, including the Japanese. ''Japan thinks that's against the [principles of] the World Trade Organization,'' says Embassy official Junichiro Miyazaki.
The cost of this overcharge to a nation of immigrants who love to phone home: $5.4 billion annually.
EDITED BY PAT WECHSLER
Catherine Yang