To: SteveG who wrote (8830 ) 1/8/1998 9:43:00 AM From: SteveG Respond to of 21342
<A> WSJ: U.S. Asks Judge To Put Telecom Ruling On Hold By Michael Schroeder Staff Reporter of The Wall Street Journal WASHINGTON -- The Justice Department asked a Texas judge to put on hold a controversial New Year's Eve ruling that overturned a key part of the 1996 telecommunications law and would allow regional Bell companies enter the long-distance business. Separately, U.S. District Judge Joe Kendall in Wichita Falls Wednesday approved a motion filed Dec. 30 by Bell Atlantic Corp. to join in SBC Communications Inc.'s suit challenging the act. But he also denied a similar motion by Ameritech Corp. filed on Jan. 5. In its filing to the district court Wednesday, the Justice Department said it plans to appeal the ruling and, as expected, asked Judge Kendall to stay his decision until a higher court completes its review. If he rejects the stay, the Justice Department will seek one from the Fifth Circuit Court of Appeals in New Orleans, which would hear the government's appeal and is likely to approve a stay. The government says it will seek an expedited appeal, which would take three to seven months, according to federal officials. Several long-distance carriers, including AT&T Corp., Sprint Communications Co. and MCI Communications Corp., and trade groups also have asked for a stay and plan to appeal. The Justice Department, representing the Federal Communications Commission, said Judge Kendall's ruling would "radically reshape the comprehensive legal framework crafted by Congress in the 1996 act." SBC, based in San Antonio, and U.S. West Communications Inc., which joined the suit, have vowed to quickly enter the long-distance business. SBC Wednesday filed a long-distance rate plan with Oklahoma regulators-proposing rates at around 14 cents a minute-and asked state officials for accelerated approval. The company pledged to offer service within 30 days. In its suit, SBC said the law made it harder for the nation's five Baby Bells, which were spun off from AT&T by a 1984 court order and include Ameritech, Bell Atlantic and BellSouth Corp., to offer long distance than it did for other local carriers, such as GTE Corp. The law forbids them from selling long distance within their regions until they open local monopolies to competition. The Bells argued that Congress unfairly singled them out for punishment. Judge Kendall agreed, saying that provisions of the law restrict the Bells' ability to enter new markets. "We certainly weren't surprised," by the Justice Department's actions, said Royce S. Caldwell, head of SBC's telephone operations. "We're disappointed because we think it delays competition." --- Stephanie Mehta contributed to this article