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Market entices Baby Bell Bell Atlantic looking to go the distance Wednesday, July 21, 1999
By Peter P. Donker Telegram & Gazette Staff
WORCESTER-- Bell Atlantic Corp.'s application to enter the long-distance market in Massachusetts had fairly smooth sailing at a public hearing last night with only a few people questioning the appropriateness of the request. MCI WorldCom and AT&T, who strongly oppose Bell Atlantic's plans, did not appear at the session in City Hall. One adversary who did, Bruce A. Kushnick of New York, author of "The Unauthorized Bio of the Baby Bells," however, more than made up for their absence. In his self-published book, which is very critical of the regional Bell telephone companies, Kushnick argues that they have used their monopoly position in the local telephone market consistently to overcharge their customers. Contrary to claims by Bell Atlantic, Kushnick said there is a continuing lack of competition for residential customers and only a small amount of competition in the business sector. He called it premature to allow Bell Atlantic to enter the long-distance market and said the Massachusetts Department of Telecommunications and Energy should investigate the telephone company instead. In May, Bell Atlantic filed its 15,000-page application with state regulators with the expectation of a quick approval. It plans to begin selling long-distance service in Massachusetts early next year. To be successful, Bell Atlantic, however, will have to prove to state regulators and the Federal Communications Commission that it has complied with a 14-point checklist that will show whether it has opened up its local telephone market to competition. Under the Telecommunications Act of 1996, Bell Atlantic and the other Baby Bells are not allowed to provide long-distance service until they have shown their local market is open to other telephone providers. To bolster its application, Bell Atlantic has argued it is facing 40 competitive telephone companies in the state, that it has resold 150,000 of its telephone lines at discounts from 25 to 30 percent to resellers of phone service and that 280,000 lines from other competitive local telephone providers are connected into the Bell Atlantic system. That represents about 10 percent of Bell Atlantic's network of 4.5 million telephone lines, the company has said. Of the competitive exchange carriers, though, hardly any provides local telephone service to the residential market. Practically all are aimed at the more lucrative business market. In its filing, Bell Atlantic said there was no reason for it to be locked out of the long-distance market any longer. At the hearing, Bell Atlantic's John L. Conroy said the company believes its filing shows it has complied with all the requirements. Speaking in support of the application, William J. Short, president of the Worcester Area Chamber of Commerce, which serves 4,000 businesses in Central Massachusetts, said Bell Atlantic's move into long-distance market was bound to improve service. Saying he was in favor of one-stop shopping for his organization's communications needs, Paul L. Mina, president of the Tri-County United Way in Framingham, also spoke in support of the application. So did Jesse M. Anderson, manager of information systems at the EcoTarium in Worcester, who said competition in the telecommunications market is essential. Robert L. Thomas, executive director of the Martin Luther King Empowerment Center, liked the idea of more choice. Thomas said Bell Atlantic's move into long distance would be a plus for residential and small business customers. Donald F. Wentworth of Creative Services of New England in Worcester, a distributor of imprinted promotional products, however, opposed the move. The telephone company, he said, has not fulfilled all its promises of improved service. For small companies, according to Wentworth, digital technology is not yet available at reasonable rates. Roger L. Steele, of Worcester, questioned whether Bell Atlantic would have the technology in place for a smooth transition into the long-distance market. Last night's hearing was the second in a series of five sponsored by the Department of Telecommunications and Energy. Earlier this week, it held a session in Pittsfield. Future hearings are scheduled for New Bedford, Gloucester and Newton. Based on the hearings and other testimony, Commissioner Paul B. Vasington said the Department of Telecommunications and Energy will prepare a report on Bell Atlantic's compliance for the FCC. He said the DTE expects to present its findings in the fall. Bell Atlantic filed its first application to enter the long-distance market last year in New York. Besides its filing in Massachusetts, it also wants to enter the long-distance market in Pennsylvania and New Jersey. So far, none of the Baby Bells has met the 14-point checklist, a test the Baby Bells are required to meet. With 23.5 million business and residential customers in 13 states from Maine to Virginia and revenues of $31.6 billion, Bell Atlantic is the nation's largest provider of local telephone service. $e © 1999 Worcester Telegram & Gazette
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