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The Zacks Analyst Blog Highlights: AT&T, Verizon Communications, Frontier Communications, CenturyLink and Sprint

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For Immediate Release

Chicago, IL - October 21, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the AT&T, Inc. ( T ), Verizon Communications Inc. ( VZ ), Frontier Communications Corporation ( FTR ), CenturyLink, Inc. ( CTL ) and Sprint Corporation ( S ).

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Here are highlights from Tuesday's Analyst Blog:

AT&T, Verizon to Face FCC Probe for Special Access Control

The Federal Communications Commission (FCC) recently launched an investigation into the competitive impact and the terms and conditions of business Internet contracts.

The investigation will primarily focus on the handling of special access, which is the wide range of data connections business enterprises purchase from Internet providers for data and communication needs.

U.S. telecom behemoths AT&T, Inc. ( T ) and Verizon Communications Inc. ( VZ ), along with Frontier Communications Corporation ( FTR ) and CenturyLink, Inc. ( CTL ), who dominate the special access market, are thus under the FCC scanner. Interestingly, the FCC estimates that the size of the market under question is worth roughly $20 billion.

Notably, special access tariffs are charges on Internet bandwidth, or fees levied on dedicated wireline circuits, typically owned by large telecom carriers like AT&T and Verizon. Meanwhile, these services are sold to smaller carriers like Sprint Corporation ( S ).

Thus, a hike in such fees directly affects the customers of these competitive carriers who pay special access charges for dedicated wireline circuits which support Internet services. However, the investigation will not evaluate the fees charged by these large incumbents from rivals and business customers but only focus on the terms of the deals.

Interestingly, the probe is being incited following complaints from companies like Sprint and Level 3 Communications that the tariffs for business data services are unreasonably high. The companies have further alleged that the deals are designed with restrictive terms and also hefty early termination fees.

However, AT&T along with Verizon and other large carriers have denied being involved in such practices and maintain that their operations are competitive.

Thus, the FCC investigation, which is set to take at least a few months, will closely scrutinize the operations of these large carriers to ensure that the spirit of competition in the special access market is intact.

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AT&T INC (T): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

FRONTIER COMMUN (FTR): Free Stock Analysis Report

CENTURYLINK INC (CTL): Free Stock Analysis Report

SPRINT CORP (S): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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