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Why did the FCC require reductions in access rates?

The current system that is used by long-distance companies to compensate local companies for use of the local network was first established in 1984, after the AT&T divestiture, and at a time when there was no competition for local service. Much has changed since 1984 and the FCC recognized that this system did not work well when there is competition for local service. In addition, the FCC believes the current system may make it difficult to develop and use new technologies, such as internet protocol networks.