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To: S. HYDER who wrote (3826)	1/25/1999 11:47:00 AM
From: Anthony Wong	Respond to of 11568

U.S. High Court Revives Telephone Competition Rules Monday January 25 10:50 AM ET WASHINGTON (Reuters) - The Supreme Court Monday overturned a lower court decision and revived federal rules designed to promote competition in local telephone markets. The decision marked a win for the Federal Communications Commission, which wrote the rules, but a defeat for the regional Bell companies that brought the lawsuit challenging the rules. The Bells had successfully convinced an appeals court that the FCC had overstepped its authority in drafting local competition rules based on the 1996 Telecommunications Act. The FCC's rules required the Bells to lease to competitors, including major long distance companies like AT&T Corp. (NYSE:T - news) and MCI WorldCom Inc. (Nasdaq:WCOM - news), portions of their local telephone networks at deeply discounted prices. Writing for the court in Monday's decision, Justice Antonin Scalia said Congress had given the FCC ambiguous instructions so the agency should be given some leeway in interpreting the 1996 law. With the federal rules thrown out by the lower court, states have enacted a wide array of differing regulations, many of which are also being challenged in court, and little competition has developed in the $100 billion local market.

To: S. HYDER who wrote (3826)	1/25/1999 11:52:00 AM
From: Anthony Wong	Respond to of 11568

Legg Mason's Cleland on Supreme Court Decision: Court Comment Bloomberg News January 25, 1999, 11:10 a.m. ET Washington, Jan. 25 (Bloomberg) -- A comment by Scott C. Cleland, managing director of Legg Mason Inc.'s Precursor Group in Washington, on the decision by the U.S. Supreme Court saying the 1996 Telecommunications Act authorizes the U.S. Federal Communications Commission, not the states, to set the pricing methods for new competitors to the five Bells that now dominate the local phone industry. ''This is a huge victory for the FCC and competitors, a huge setback for local phone companies,'' he said. ''This changes the field of play significantly, and puts the local phone companies on the defensive.'' ''Competitors will have a much better deal in reselling the local phone networks because they'll get a deeper discount,'' he said. ''This big a victory by the FCC wasn't expected.'' --Alan M. Wolf in Washington (202) 624-1880/ah

To: S. HYDER who wrote (3826)	1/25/1999 11:54:00 AM
From: Anthony Wong	Respond to of 11568

HSBC's Dellinger on Supreme Court's FCC Decision: Court Comment Bloomberg News January 25, 1999, 11:26 a.m. ET Washington, Jan. 25 (Bloomberg) -- Comment from George Reed Dellinger, an analyst at HSBC Washington Analysis, on the U.S. Supreme Court's decision to allow the Federal Communications Commission, not the states, to set pricing rules governing new competitors to the five regional Bell telephone companies that dominate the $100 billion local phone business. ''I think the FCC would simply be more aggressive in opening up the local markets than would the states,'' he said. ''Local competition . . . has been slow to take hold, partially because the local phone companies have been successful in stonewalling the FCC's efforts.'' Because of the FCC's new added power, ''It would be a blow to local phone company efforts to slow down, stall, and stonewall the intent of the 1996 act. And it would be a boon to the competitors of local phone companies.'' --Scott Ferry in Washington (202) 624-1820/ah/jhr