Desktop Encyclopedia of Telecommunications, Second Edition

Access charges are the fees that incumbent and competitive Local Exchange Carriers (LECs) charge the Interexchange Carriers (IXCs) for connections to their local exchanges at both the originating and terminating ends of the call. These costs are eventually passed through to consumers and show up on their long-distance bills in the form of a higher per-minute rate. The IXCs have believed for years that they have been overcharged for access, and they have raised numerous complaints with the Federal Communications Commission (FCC).
In 1997, the FCC endeavored to reform the system of access charges. First, the FCC created a framework so that the rates that are charged for the components of access are more reflective of costs. Second, the FCC moved residual costs that were traditionally recovered on a per-minute basis into a more efficient, flat-rate charge system. Finally, multi-line business and multi-line residential customers picked up a greater share of costs through increased subscriber line charges and flat-rate charges.
The FCC has always treated the Competitive Local Exchange Carriers (CLECs) as non-dominant in the provision of terminating access service, because they did not appear to possess market power. The FCC had reserved the right to revisit the issue of regulating CLEC terminating access rates, however, if there were sufficient indications that they were imposing unreasonable terminating access charges.
This issue was reviewed in August 1999. The FCC noted that with originating access, the calling party has the choice of service...