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Byline: REINHARDT KRAUSE
Despite fierce lobbying by regional Bell phone companies, a divided Federal Communications Commission voted Thursday to maintain state regulators' role in overseeing local competition.
The FCC voted 3-2, with Chairman Michael Powell dissenting, to let state regulators determine what parts of local phone networks the Bells must lease to rivals and at what rates.
Powell's dissent sets the stage for another round of court battles, because it gives Bells ammunition for an appeal.
Ever since Congress passed the Telecommunications Act of 1996, a debate has raged over whether federal or state regulators hold the most authority.
Three Republican FCC members generally favor less regulation.
But one of them, Republican Kevin Martin, says state regulators are best equipped to analyze the local competitive landscape.
State regulators took the lead over the last two years in lowering the prices that rivals pay to lease Bell networks. That angered the Bells, which think the network-sharing deals are unfair.
Powell Stymied
Martin, along…