Price Cap Business Data Services: Regulation of Business Data Services for Rate-of-Return Local Exchange Carriers

Key Points

• 1The rule caps prices that smaller local telephone companies can charge for business data services like internet and networking
• 2It applies specifically to rate-of-return carriers, which are telephone companies regulated under a traditional profit-sharing model rather than competitive pricing
• 3The regulation protects small businesses, hospitals, schools, and other organizations from price gouging in areas where these carriers have limited competition
• 4Companies must follow pricing limits while still being allowed reasonable profits to maintain service quality and infrastructure
• 5The rule helps ensure fair competition in the business telecommunications market where smaller carriers might otherwise have too much pricing power

Key Dates