Liberty Bell Telecom BACKGROUND Prior to the formation of Liberty Bell Telecom, it was virtually impossible to provide competitive local phone service. New companies were faced with either building an entire network from scratch or leasing lines from pre-existing phone companies at outrageous rates. That is why many new phone companies have been unsuccessful in the past. Things have now changed thanks to a series of battles by consumer advocates. They challenged big phone companies before government officials, the FCC and the courts. Consumer advocates argued that existing local phone companies were charging unreasonable rates when leasing lines to competitors. They argued that big local phone companies have had their monopolies long enough to recoup all of their initial investments. They also argued that big local phone companies should lease lines at wholesale rates, or actual cost, to competitors. Consumer advocates around the country were successful in their arguments and big local phone companies were ordered to begin leasing lines to competitors at reasonable rates. They were also warned not with withhold service or ignore competitors when it comes to facilitating repairs and maintenance. Big local phone companies face severe penalties if they attempt to thwart the efforts of competing phone companies.
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