A U.S. Judge strikes down parts of '96 Telecommunications Act; regional Bells may offer long-distance service

Article Abstract:

A Federal judge struck down key portions of the 1996 Telecommunications Act, saying it unfairly prevented regional Bell telephone companies from entering the long-distance business. Judge Joe Kendall, of US District Court in Wichita Falls, TX, issued the ruling that could significantly impact the telecommunications industry if upheld. Bell companies would have the opportunity to offer long-distance service for the first time since AT&T's breakup in 1984. Long-distance carriers are almost certain to challenge Kendall's ruling, as they would deal with various new competition. The act requires the Bells to convince the FCC that they have opened their local networks to potential rivals, before they may sell long-distance service. Kendall said the act was unconstitutional because Congress basically had declared the Bells guilty of antitrust violations without a trial. SBC Communications, the plaintiff, called the decision a significant victory.

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Local Bells win another victory to block rivals

Article Abstract:

A Federal appeals court dismissed key elements of FCC regulations that encourage long-distance telephone companies to compete with regional Bells in local telephone markets. The US Court of Appeals for the Eight Circuit ruled that states, rather than the FCC, had the right to establish local phone companies' prices for selling access to their networks. The overturned FCC rules not only would have required the regional Bells to sell unbundled network elements, but also would have forced the regional Bells to customize bundles of services without charge. The ruling is viewed as another setback for the FCC's plans to boost competition. Telecommunications executives had viewed the FCC rules as an opportunity for companies to challenge regional Bells. Ameritech, Bell Atlantic, BellSouth, SBC Communications and U S West comprise the five regional Bells that dominate the domestic local telephone markets.

Laws, regulations and rules, United States. Court of Appeals for the 8th Circuit

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U.S. judge stays his ruling on long-distance service

Article Abstract:

Federal Judge Joe Kendall temporarily stayed his ruling that allowed local Bell telephone companies to sell long-distance service without passing a rigorous FCC review. Kendall's action forces the Bells to honor the language of the Telecommunications Act of 1996 until courts of appeal consider his original decision. The appeals court process could require months or years. Kendall ruled in the Federal District Court in Wichita Falls, TX, that portions of the legislation were unconstitutional. This Dec 31, 1997, ruling placed the entire US telecommunications regulation structure into question. The FCC, as well as AT&T and MCI, have petitioned the New Orleans-based US Court of Appeals for the Fifth Circuit to hear the case. The Telecommunications Act of 1996 requires the Bells to receive special FCC approvals before they sell long-distance service in the $80 billion long-distance market.

Mergers, acquisitions and divestments, Regional Bell Operating Companies

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