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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.