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Technology Stocks : Winstar Comm. (WCII)
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To: SteveG who wrote (7665)8/11/1998 3:04:00 AM
From: SteveG  Read Replies (1) of 12468
 
<A> WSJ: Appeals Court Sides With FCC In Case Of Bells' Networks

From The Wall Street Journal

WASHINGTON -- A federal appeals court dealt a blow to the Baby Bells,
upholding a Federal Communications Commission decision forcing them to share with would-be rivals the full efficiencies of their local telephone networks.

The 1996 telecommunications reform law required the Bells to open regional networks to competitors and allow them access to facilities that transport calls and data. The FCC ordered the Bells to provide access to the networks' full features, functions and capabilities, which would allow rivals to enjoy the large networks' economies of scale.

The case, filed by SBC Communications Inc. last August, hinged on
differing interpretations of Congress's intent. SBC, joined by Ameritech Corp., Bell Atlantic Corp. and other carriers, argued that the 1996 law merely requires carriers to provide leased access only to portions of their networks. Calls placed on those segments would travel along fixed paths and couldn't bounce between various network points. That would effectively render the competitor a noncontender, since some calls on busy routes wouldn't go through.

The U.S. Court of Appeals for the Eighth Circuit in St. Louis sided with the FCC.

The Bells were troubled by the judgment. An Ameritech spokesman said the company "is strongly considering asking the court to reconsider."
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