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CABLE WORLD STAFF
As AT&T Corp. gets closer to offering local telephone services, regional Bell operating companies (RBOCs) have been telling the press and regulators of their interest in entering the long-distance market. But that doesn't look like it's going to happen overnight. Analysts say that the Bell companies have to apply for entry into long-distance on a state-by-state basis. So far, Bell Atlantic Corp. has filed in New York state and SBC Communications Inc. has filed in its home state of Texas.
In order to spur competition as envisioned by the Telecommunications Act of 1996, the Federal Communications Commission (FCC) is also requiring the local telephone companies to open their networks up to competition before being allowed to offer long-distance service in their markets.
In the meantime, the local telephone companies and executives who run them have had a lot to say about AT&T's activities.
In response to the Feb. 1 AT&T-Time Warner telephony joint venture announcement, Bell Atlantic issued a statement that read in part: "AT&T's alignment with yet another massive cable company proves our point: The local telephone markets are fully competitive and it's time to let Bell Atlantic offer customers long distance service now.
"Moreover, this announcement demonstrates that technology is outpacing regulation. As more local service alternatives become available to customers, all companies should be welcomed to compete in local and long-distance markets. Public policy should spur competition, not stifle it.
"But until free market forces can take hold, AT&T's strategy to bypass the local phone network, serves only the most lucrative customers, and abandons all obligations to universal service before regulators lift restrictions is premature and irresponsible. We urge regulators to take a close look at AT&T's approach and open long-distance markets to real competition now."
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