Sale of FCC licenses in several states nets budget pocket change; public airwaves went cheap after Congress pushed agency for fast auctions; McLeod bags four for $4

Article Abstract:

Clark McLeod's company, McLeodUSA, purchased four wireless communications licenses from the FCC for $4. The four licenses give him permission to serve most of Iowa, Wisconsin, Minnesota and Nebraska. Mr. McLeod intends to sell bundled local and long-distance telephone services as well as paging, cellular and Internet access services. The low price paid by McLeodUSA has prompted a debate in Washington, as policymakers attempt to strike a balance between the need to balance the budget and the need to encourage competition in the telecommunications industry. Congress set up the auction so quickly in order to supplement the budget. Consequently, makers of telecommunications equipment did not have time to make plans or line up financing, and had no idea what they would need to build or how much they would have to spend.

Licensing agreements, Company licensing agreement, McLeod USA Telecommunications Services

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SBC files challenge to Telecom law; Texas Bell wants court to strike down hurdles in long-distance arena

Article Abstract:

SBC Communications has filed a law suite in a Texas federal court, contending that the Telecommunications Act of 1996 is unconstitutional in its efforts to hinder the regional Bells from entering the long-distance telecommunications market. The law suite was prompted by the FCCs refusal to grant SBC the right to offer long-distance service to residents in Oklahoma. In the law suite, SBC claims the company's right to free speech is infringed on by the long-distance provisions in the Telecommunications Act. SBC also contends that the law violates the prohibition against singling out individuals for punishment as well as the separation-of-powers and equal-protection clauses. It is estimated that the court case will take a least a year to be resolved.

Long distance telephone services, Long-distance telephone service

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FCC is prepared to reject SBC's bid to offer long-distance phone service

Article Abstract:

SBC Communications' application to offer Oklahoma residents long-distance telephone service will be rejected by the FCC. This will be the first time since the 1996 Telecommunications Law went into effect that the FCC has rejected an offer by a Baby Bell to provide long-distance service. The FCC claims this is because SBC has not sufficiently opened its local markets to competition. The SBC argued that it has met the stipulations by signing agreements with 16 of its competitors, six of which state regulators have already approved for local phone service. The FCC is expected to base its decision on the Justice Dept's belief that SBC has not done enough to encourage rivalry in Oklahoma's local-phone markets.

Laws, regulations and rules, Local telephone services, Local telephone service

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