Bell Atlantic Files § 271 Application

(September 30, 1999) Bell Atlantic applied to the FCC on Wednesday, September 29 to provide long distance telephone service in New York.

Section 271 of the Telecommunications Act of 1996 requires Regional Bell Operating Companies (RBOCs) to comply with 14 point "competition" checklist before they can provide in region interLATA phone service.

Glossary of Terms
RBOC. Acronym for Regional Bell Operating Company. One of the local phone companies created by Judge Greene's 1984 divestiture order. Currently, there are five remaining RBOCs: Bell Atlantic, Bell South, Ameritech, SBC, and U S West. Under the 1984 order, the RBOCs were prevented from offering long distance phone service. Under the 1996 Telecom Act, RBOCs may provide long distance service once they have complied with Section 271.
InterLATA. A reference to telephone calls, or other telecommunications services, that originate in one Local Access and Transport Area (LATA), and terminate in another. Generally, interLATA calls are long distance.
§ 271. The section of the Telecommunications Act of 1996 which prevents RBOCs from providing interLATA services within their regions until they have convinced the FCC, on a state by state basis, that they have opened their facilities to competitors, as measured by compliance with § 271's 14 point checklist. The list includes requirements such as non-discriminatory access to network elements and white pages directory listings for competitors customers. See also, text of § 271.
Bill of Attainder. A legislative act that singles out an individual or group for punishment without a trial. The Constitution of the United States, Article II, Section 9, paragraph 3 provides that: "No Bill of Attainder or ex post facto Law will be passed." See also, detailed definition and discussion.

"We've met the requirements of the Telecommunications Act. We have earned the opportunity to add long distance to our suite of services, and our customers demand nothing less," said Ivan Seidenberg, Bell Atlantic Chairman and CEO, in a press release.

The Federal Communications Commission, which has the responsibility for passing on applications from RBOCs to provide long distance service under § 271, has denied all such applications in the past. It has 90 days to review this application.

In addition, SBC and other RBOCs unsuccessfully challenged the constitutionality of § 271 in federal court in the case SBC v. FCC. The trial court judge ruled for the RBOCs in December of 1997, holding that § 271 constituted an unconstitutional bill of attainder. However, the Fifth Circuit issued an opinion reversing the trial court. The Supreme Court subsequently denied SBC's petition for writ of certiorari. (It refused to hear an appeal.)

"Bell Atlantic has invested more than $1 billion to ensure that our network is available and open to our wholesale customers," said James Cullen, President and COO of Bell Atlantic, in a press release. "We can and are doing the job for these carriers. As a result, the local market in New York is irreversibly, indisputably open - today."

"Bell Atlantic intends to provide a clear choice to consumers at a time when confusion reigns in the long distance marketplace," Cullen said. "With the FCC's approval of this application, we'll deliver simple, creative calling plans, on a single bill. And customers will be assured they're receiving those services from the one trustworthy source that understands all their local, toll, and long distance calling needs: Bell Atlantic."

Fellow RBOC Bell South supports Bell Atlantic's application. "We congratulate Bell Atlantic for reaching this milestone. We wish Bell Atlantic well in their efforts to break the long-distance entry Barrier in New York," said Randy New, BellSouth's VP for Public Policy, in a press release.

"Competition is alive and well in local telephone markets throughout the country. Georgia, a rapidly growing state with Atlanta as its hub, is a hotbed for local telephone competition," said New.

"A rigorous test of BellSouth's systems for connecting competitors to customer lines is underway in Georgia now. Once that test is complete later this year, BellSouth in Georgia will ask the FCC for the same thing Bell Atlantic is seeking in New York - permission to compete against the rapidly-merging long-distance giants and offer customers a complete package of services - local, long-distance, wireless and Internet access."

Interexchange carriers oppose the application.

AT&T, which would be a long distance competitor of Bell Atlantic in New York if the application were granted, has long opposed Bell Atlantic's entry into the long distance markets. James Cicconi, AT&T's EVP and General Counsel stated that the "application is flawed and should be rejected by the FCC."

"Bell Atlantic has decided that despite some serious remaining problems processing customer orders, it will try to leapfrog compliance and muscle its long distance application through the federal review process. Federal regulators should recognize that approving a premature application will hurt telephone customers in New York and set back competition everywhere." said Cicconi in a press release.

SPRINT

Similarly, Sprint has opposed the application. David Eisenberg, VP for state external affairs, stated in a press release that "Bell Atlantic has come a long way – but not far enough – toward meeting the requirements of opening its local market for Federal Communications Commission approval to provide long-distance service in New York. A competitive local marketplace means a level playing field for all players, but the field is still tilted in Bell Atlantic’s favor."

Eisenberg continued that "Sprint and others have identified several areas in which Bell Atlantic needs to make further progress to open its New York market for competition, and the New York Public Service Commission, after extensive review, has not made a recommendation on approval. Specifically, problems still exist related to Bell Atlantic’s software and systems to interact with other carriers, its ability to switch traffic to competitors, and other problems that would result in competitors having to incur considerable expense to overcome Bell Atlantic shortfalls to ensure they can provide equal or better service to New Yorkers."

"These are important considerations for the FCC commissioners as they review Bell Atlantic's application, and Sprint believes that the request should not be granted until problems are fully addressed," Eisenberg concluded.

USTA

The United States Telephone Association (USTA), a trade group which represents RBOCs and other local exchange carriers, but not interexchange carriers, such as AT&T, Sprint, and MCI WorldCom, supports the application.

Roy Neel, President and CEO of the USTA, said the following. "America's local phone companies have spent billions of dollars to open the local market and comply with the FCC's 14-point checklist of requirements for long distance entry. Bell Atlantic has worked closely with the New York Public Service Commission to ensure that competitors have access to the local market, and as a result, more than one million local lines in New York are being serviced by competitors. We hope that the FCC will recognize this achievement and allow New Yorkers to get the price break on long distance service they deserve."