Panel Probes 'Traffic Pumping'
Key House Energy and Commerce Committee's members Tuesday sought information from two dozen local telecommunications companies as it reviews complaints of "traffic pumping schemes" involving firms that allegedly charge excessive rates for completing calls.
The committee is examining complaints from some big telecom firms that some rural carriers are charging excessive access fees by driving up call volumes by working with high-traffic Web sites such as those that may offer conference calling services or pornographic content.
In the letters to the 24 companies, Energy and Commerce Chairman Henry Waxman, D-Calif., Communications Subcommittee Chairman Rick Boucher, D-Va., and Oversight and Investigations Subcommittee Chairman Bart Stupak, D-Mich., say the "existing access charge regime may create incentives for incumbent local exchange providers to charge excessive rates for terminating access."
In October, the lawmakers sought information from interexchange carriers such as AT&T, Qwest, Sprint, and Verizon about whether they had ever withheld payments to the local providers over access charge disputes.
In one of the letters Tuesday to the local firms, the lawmakers said two of the large telecom carriers reported having disputes with Premiere Communications of Iowa. The lawmakers asked several questions of the firm such as who the company shares revenue with, how many lines does it serve, and how much revenue does it get from access charges associated with free chat line and conference calling services.
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