To: Lost in New York who wrote (15907 ) 6/7/1998 11:35:00 PM From: Moonray Respond to of 22053
Bell Atlantic to Unveil Plans for Long-Distance Data Network New York, June 7 (Bloomberg) -- Bell Atlantic Corp., the largest U.S. local phone company, will announce plans tomorrow to build a long-distance network for Internet and data traffic in a bid to grab a bigger piece of the fast-growing market. Bell Atlantic, which offers local services in 13 states from Maine to Virginia, asked the Federal Communications Commission in January to waive rules restricting it from offering long-distance services to local customers. The 1996 Telecommunications Act prohibits Baby Bells like Bell Atlantic, which have a virtual monopoly on the local market, from offering long-distance until their local regions are open to competition. Though the New York-based company already offers Internet access to local customers, it must pass the traffic to other carriers to send the information outside of its local markets. The Bells are free to offer the services outside of their local regions, and building the network will give Bell Atlantic the ability to go after the fastest-growing market in the telecommunications industry. ''Data networks are the future,'' said Jeffrey Kagan, president of market researcher Kagan Telecom Associates in Atlanta. ''This will be key to their viability.'' Kagan said 1998 is the first year that data traffic will surpass voice on phone networks, and he expects in the next few years that data will account for 80 percent of all phone traffic. Though the FCC hasn't yet decided whether the Bells will be able to offer long-distance data services to their local customers, Bell Atlantic said its plans are legal. 'Confident' of Legality ''What we're going to announce, we're confident we can do,'' said Larry Plumb, a company spokesman. He declined to comment further. Joe Farina, president and chief executive of the company's data solutions group, will host a conference call for analysts and reporters tomorrow morning at 10 a.m. New York time to discuss the plans. Other Bells, including Denver-based U S West Inc. and Chicago-based Ameritech Corp., have made similar applications at the FCC to offer long-distance data services. Last week, Bell Atlantic said it will offer high-speed Internet access services to customers in Washington, Pittsburgh and Philadelphia in September and in New Jersey's Hudson River area in October. New York and Boston will be added next year. In order to offer long-distance services in their regions, the Bells must pass a 14-point checklist set up by the FCC to prove those markets are open to competition. So far, none of the Bells has passed the test. .....however I'm stuck with Bell Atlantic. o~~~ O