| BUSINESSWEEK ONLINE : OCTOBER 11, 1999 ISSUE | ||||||||
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| SPECIAL REPORT
Third World Backlash The Federal Communications Commission's decision to unilaterally cut the rates U.S. phone companies pay to phone companies abroad sparked a fierce outcry around the world. LOST DOLLARS The loss of telephone fees has been particularly painful in developing countries, where they often are one of the most important sources of hard currency. In Senegal, for example, payments by U.S. phone companies dropped to $14.5 million in 1997 from $19.4 million in 1996. That's estimated to have fallen to about $10 million in 1998. The world's poorest countries, with per capita incomes below $780, could lose around 5% of total telecom revenues. LEGAL ACTION Latin American countries sued the FCC to rescind the commission's decision. But the U.S. courts rejected their claims earlier this year. DIPLOMATIC PRESSURE The International Telecommunications Union in Geneva voted 188-to-1 this spring in favor of slower telephone rate cuts to poor countries than those mandated by the FCC. The U.S. was the lone negative vote. The FCC has no plans to comply with the ITU's vote. CONTINUING RESISTANCE Some of the least developed countries, including India, say they will not comply with the FCC order by the 2002 deadline and will continue to charge U.S. phone companies higher rates. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Dialing for Pennies TABLE: Dialing Abroad Will Never Be the Same Again Coping with the Revolution TABLE: Third World Backlash A Failure to Communicate TABLE: The Trouble with Global Plans ONLINE ORIGINAL: The FCC's Kennard: Fighting for Lower Long-Distance Rates INTERACT E-Mail to Business Week Online | |||
