FCC to Proceed on International Rate Plan

The Federal Communications Commission agreed to move forward on a plan intended to eventually lower international phone rates and possibly save U.S. callers billions of dollars. Although U.S. long-distance companies like the plan, foreign telecommunications groups are opposed and will get the chance to weigh in before the FCC takes a final vote. Under the plan, which would be phased in, U.S. companies would not pay developed countries, such as the European Union, Japan and Singapore, more than 15 cents a minute to complete calls. For less-developed countries, such as Mexico, they would not pay more than 19 cents a minute; for developing countries such as some in Africa, U.S. carriers would not pay more than 23.4 cents a minute. The proposal is designed to bring international phone rates closer to the costs of actually providing them. About $60 billion a year is spent on international calls worldwide.