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