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Phone frenzy

By Dean, Joshua
Publication: Government Executive
Date: Monday, May 1 2000
HEADNOTE

The General Services Administration is pitting local and long-distance phone companies against each other to get the lowest prices.

Just last year, federal agencies with offices in New York City were paying

$30 per month per phone line for local telephone service. But under a set of new federal telecommunications contracts awarded recently that price is supposed to drop to just $4 per phone.

That's a $26 reduction per line-nearly 90 percent.

Under a new strategy executed by the General Services Administration's Federal Technology Service, government agencies are beginning to benefit from the lowest local and long-distance phone prices ever.

The core of the strategy is what former FTS Commissioner Dennis Fischer calls "fair and relentless competition." FTS has taken advantage of the 1996 deregulation of the telecommunications industry and has incorporated the new spirit of competition into the core of its new array of voice, video and data transmission contracts.

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