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FCC votes to deregulate business data services, portending price hikes

Published 04/20/2017, 03:43 PM
Updated 04/20/2017, 03:43 PM
© Reuters.  FCC votes to deregulate business data services, portending price hikes
  • As expected, the FCC has voted to do away with most regulations of the $45B business data services market, effectively deregulating the business and likely paving the way for price hikes on small business (and schools and libraries) from telecom giants.
  • The rich are set to get richer: AT&T (T +0.2%), Verizon (VZ -1.3%), CenturyLink (CTL +0.7%). But some companies like Sprint (S +0.2%) backed the old plan, saying prices for business data are too high.
  • Small businesses and government services need special access lines to quickly transmit large amounts of data, such as to ATM readers or credit-card gas pumps.
  • The move today isn't a complete deregulation, as a few price caps in areas with little competition will be kept. FCC Chairman Ajit Pai said the regulations had threatened competition and investment.
  • Other BDS players: FTR +4.3%, BT +0.5%.
  • Now read: Verizon: Major Upside Breakout Imminent


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