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Technology Stocks : Qwest Communications (Q) (formerly QWST)

Q 77.60

-4.2%

Dec 1 3:59 PM EST

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To: Capitalizer who wrote ()	5/27/1998 9:14:00 PM
From: TideGlider	of 6846

Wednesday May 27, 7:45 pm Eastern Time Bell Atlantic undecided on Qwest-type pacts WASHINGTON, May 27 (Reuters) - Bell Atlantic Corp. remains undecided on whether to pursue joint marketing agreements with long distance carriers as two other Baby Bells have done, a senior official said Wednesday. ''Whether or not this is a strategy we would pursue is something that has not yet been decided,'' senior vice president Thomas Tauke told reporters at a press briefing here. ''Bell Atlantic continues to explore all avenues for providing services to customers,'' he added. Earlier this month, Ameritech Corp (AIT - news) and US West Communications Group (USW - news) struck agreements with Qwest Communications International Inc (QWST - news) to offer their customers long distance service provided by Qwest. The Bells receive a fee from Qwest for each customer referred. Tauke defended the legality of the arrangements, which AT&T Corp (T - news) and MCI Communications Corp (MCIC - news) have charged violate the 1996 Telecommunications Act. ''A careful reading of the Telecommunications Act of '96 suggests that the kind of arrangement US West and Ameritech have entered into with Qwest is permissible under the act,'' he said. The long distance carriers have sued in federal court to block the marketing agreements and the Federal Communications Commission has said it is also investigating. Tauke declined to discuss any possible negotiations with long distance carriers that might be underway. ''We explore business relationships with a lot of players but we don't comment on that exploration process,'' he said. The Bell are prohibited under section 271 of the 1996 Telecommunications Act from providing long distance service directly to their customers until they open their local networks to competitors. The FCC has rejected all four Bell applications so far after concluding the companies had not sufficiently opened their networks. Tauke said Bell Atlantic would prefer to offer its customers its own long distance service. ''Obviously our first preference is to have our 271 petitons approved,'' he said. Bell Atlantic is seeking permission from state regulators to offer long distance to its customers in New York. Tauke said the process was proceeding and the company was ''on course'' to gain state approval and file for permission with the FCC by September. I would bet Bell Atlantic is ready to move to a QWST deal if they cannot provide their own service. TG

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