To: Frank A. Coluccio who wrote (5789 ) 11/1/1999 10:47:00 PM From: Frank A. Coluccio Read Replies (1) | Respond to of 12823
It looks like it's all going to be about unbundled loops, at this point:Bell Atlantic's Long-distance Plans Hit Justice Department: More work needed to gain approval cbs.marketwatch.com ----------------------- By Jeffry Bartash, CBS MarketWatch Last Update: 4:58 PM ET Nov 1, 1999 WASHINGTON (CBS.MW) -- Bell Atlantic should not be allowed to offer long-distance service in New York until it removes several barriers to local competition, the U.S. Justice Department said Wednesday. The decision likely means Bell Atlantic won't be granted long-distance approval until it rectifies those problems. The department provided its analysis to the Federal Communications Commission, which has final authority. While Bell Atlantic has eliminated most obstacles, the department said the local phone giant still has not shown that it's providing "adequate access" to the so-called unbundled loops, the lines that connect customers to Bell Atlantic's network. In addition, Bell Atlantic is still relying on a manual system for handling orders that is "prone to error and delay" and could make it difficult for potential competitors to acquire customers, the department said. "I am confident that Bell Atlantic can solve these few remaining problems in New York," said Joel Klein, assistant attorney general in charge of antitrust matters at the Justice Department. "But those problems cannot be ignored and must be resolved if we want consumers to receive the full benefit of competition." FCC faces deadline The department recommended that the FCC deny the Bell Atlantic request to sell long-distance service, known as a Section 271 petition, until the phone carrier agrees to make the needed changes. The FCC must approve or deny the application by Dec. 28. Bell Atlantic did not have an immediate comment. Executives are holding a conference call at 4:30 p.m. ET. In late trading Monday, shares were down 1/4 to 64 11/16. The Bells have been barred from the long-distance market since the breakup of the old AT&T in 1984. Under the deregulatory-minded Telecommunications Act of 1996, the local Bells could only be granted access to the long-distance market once they proved that their markets were open to local competition. Bell Atlantic is seeking to become the first local Bell to win approval to offer long-distance. The carrier has already won the backing of New York state regulators. The New York market, the biggest and most lucrative in the country, is key to Bell Atlantic's plans to eventually become a full-service telecommunications provider. The state is home to many large corporations and other large, global-oriented institutions. See related story. Jeffry Bartash is an online reporter for CBS MarketWatch. Bill Watts contributed to this report.