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Telephone Communications: Controlling Cross-Subsidy Between Regulated and Competitive Services

RCED-88-34 Published: Oct 23, 1987. Publicly Released: Nov 10, 1987.
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Highlights

In response to a congressional request, GAO evaluated the Federal Communication Commission's (FCC) proposed implementation of accounting controls to prevent cross-subsidization between regulated and nonregulated telephone service in order to facilitate competition among telephone companies.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Federal Communications Commission The Chairman, FCC, should develop a strategy for providing greater levels of oversight and assurance that carriers are properly implementing its cost allocation procedures.
Closed – Not Implemented
Since GAO has a followup job underway examining FCC actions taken, GAO no longer needs to formally track this recommendation.

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Topics

Accounting systemsAuditing proceduresInternal controlsProposed legislationRegulationSubsidiesTelephonesCost allocationCertified public accountantsTelecommunications