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FCC DEFENDS EFFORTS FOR LOCAL PHONE COMPETITION.(Business)

The government is defending now-suspended federal rules designed to open up the $100 billion local phone market to competition.

In a brief filed yesterday with a federal appeals court, the Federal Communications Commission said it was well within its authority to give states pricing guidelines for either reselling local phone service or leasing pieces of local phone networks.

Both methods allow local phone rivals to provide service on their own in direct competition with Bell companies and other established carriers.

Congress directed the FCC in a telecommunications law to write detailed rules to bring about local phone competition, which in theory should lower ...

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