SBC emerging as a bull in the F.C.C.'s China shop
Article Abstract:
SBC Communications apparently wishes to change telecommunications regulation and regulators' minds on local versus long-distance telephone companies. SBC seems to target the $80 billion long-distance market through any means necessary, mostly working outside the Telecommunications Act of 1996's provisions. The local Bell company convinced Federal District Court Judge Joe Kendall in Wichita Falls, TX, to declare key portions of the Telecommunications Act of 1996 as unconstitutional. Kendall ruled in favor of an SBC complaint that the act's application procedure hampered its right to operate a legal business. By comparison, the act forces the five Bells to convince the Government that rivals have access to their systems before receiving approval to introduce long-distance services. SBC also agreed on Jan 5, 1998, to acquire Southern New England Telecommunications (SNET) for $4.4 billion. SNET, a non-Bell, provides long-distance service to about 40% of its 2.2 million local customers.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Court bars Bells from offering long distance
Article Abstract:
Regional Baby Bell telephone companies must allow competition in their local markets before they may sell long-distance service in their regions, a Federal appeals court ruled. The 2-1 ruling by the US Court of Appeals for the Fifth Circuit in New Orleans upholds portions of the 1996 Telecommunications Act that were struck down by a lower court. This also represents a victory for AT&T, other long-distance companies and the Justice Department. They said the Telecommunication Act had contained necessary provisions that force the Bells to open their local telephone markets. Observers believe the Bells will file an appeal with the full Fifth Court or the Supreme Court. The ruling should not impact present local or long-distance service, according to analysts.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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