Alltel to pursue local market

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Alltel, a company best known in Springfield for providing cellular phone service, now intends to seek part of the local, wired telephone market.|ret||ret||tab|

The company, which already serves more than 60,000 wire line customers as the incumbent local-service provider in smaller Missouri communities, is moving into its first major market in the state with the announcement that it will provide service in Springfield. |ret||ret||tab|

It is also entering its first market in Missouri as a competitive local exchange company, said Ray Thomas, vice president and general manager for Alltel in Missouri. In other Missouri markets, such as Bolivar and Purdy in southwest Missouri, Alltel is the incumbent local exchange carrier, as is Southwestern Bell here in Springfield, Thomas said.|ret||ret||tab|

Alltel does not have an exact timeline for providing service, but plans to have it up and running by year's end, Thomas said. Springfield is one of 17 cities in seven states that will gain Alltel's local wired service in 2000.|ret||ret||tab|

The announcement comes on the heels of several other significant announcements in telecommunications during the past several months. Southwestern Bell announced in November of 1998 plans to enter the long-distance market in Missouri and filed an application with the Missouri Public Service Commission. The filing was the first step in pursuing long-distance service in the state, said Mike Peterson, spokesman for Southwestern Bell.|ret||ret||tab|

The Southwestern Bell filing is now being evaluated by the PSC, which will determine whether sufficient local competition exists in Missouri. If ample competition does exist a prerequisite established by federal telecommunications legislation enacted in 1996 it would result in the PSC's giving a favorable review to the Southwestern Bell filing and referring the case to the Federal Communications Commission for a final decision, Peterson said. |ret||ret||tab|

For that reason, Southwestern Bell is encouraged by announcements by companies such as Alltel, Peterson said.|ret||ret||tab|

"We are encouraging competitors to meet us in the marketplace. We feel like competition benefits everybody: our company, consumers, our competitors," Peterson said.|ret||ret||tab|

In December of 1999, Southwestern Bell's application to provide long-distance service in Texas was approved, and that application is now under review by the FCC. Peterson said the Texas ruling may have some bearing on the Missouri process, in that Missouri regulators are now considering using the performance measures used in Texas to evaluate the company here.|ret||ret||tab|

"We know that the PSC staff believes it is prudent to look to the Texas performance measures, and the commission has said those may be the measures, but we are now awaiting their order saying that they will follow those measures in Missouri," Peterson said.|ret||ret||tab|

Alltel's announcement also follows the entry of Gabriel Communications into the Springfield market. Gabriel began doing business here in September of 1999, said local general manger Dale Kammerich. One of Springfield's newest competitive local exchange companies, Gabriel is also eager for competition, Kammerich said.|ret||ret||tab|

"Any time you have competition, it is good for customers and for business overall. That's why Gabriel's here," Kammerich said.|ret||ret||tab|

Alltel already has a significant presence in Springfield, Thomas said, with a call center, three retail stores and retail outlets in all the Wal-Mart stores. The company now employs between 175 and 200 people in Springfield and will probably add 14 or 15 more as a result of the addition of local, wired service, Thomas said. |ret||ret||tab|

Little Rock-based Alltel now provides wireless, Internet, paging and long-distance services in Springfield. It has an 11-year-old call center that accepts in-bound customer service calls at its administrative center at 3330 E. Montclair. The call center accepts calls from Missouri, Arkansas and Alabama, Thomas said.|ret||ret||tab|

Alltel has an interconnect agreement pending with Southwestern Bell and will not have its own fiber or facilities in the area at first, Thomas said, but will resell Southwestern Bell's services.|ret||ret||tab|

Alltel is not looking to serve a particular niche in the Springfield market, but is seeking all sorts of customers residential or business, said Jessica Brogdon, communications supervisor for Alltel.|ret||ret||tab|

"We want to serve all types of customers; we are not a niche company looking to focus on a small segment of the market," Brogdon said.|ret||ret||tab|

Alltel expects to be a lower cost provider than its competitors, and its rates have been up to 30 percent lower than its competitors in some markets, Brogdon said. |ret||ret||tab|

Thomas said Alltel's administrative center would probably expand by 2,400 square feet as a result of the new service. |ret||ret||tab|

"I believe we will have to make that expansion beforehand to prepare for this, so we are looking at the numbers on that now and finalizing some things there," Thomas said.|ret||ret||tab|

Alltel expects customers to be attracted to the idea of bundling several services: cellular, local service and Internet, onto one bill.|ret||ret||tab|

"We provide discounts to people who choose to subscribe to several of our services. The more of those you bundle, the greater the savings," Brogdon said.|ret||ret||tab|

Alltel's entry into the market in Springfield may provide further evidence that sufficient local competition exists in Missouri to enable Southwestern Bell to provide long distance in the state. Peterson said the company maintains that it is facing significant competition in the state. Southwestern Bell has 2.6 million lines, and 208,000 of those are now being served by competitors, Peterson said.|ret||ret||tab|

Ed Cadieux, executive director of regulatory affairs for Gabriel, said there is some competition, but it is not at the level the FCC is asking for.|ret||ret||tab|

"(Southwestern Bell's) markets have to be unconditionally opened, and I don't think they're there yet," Cadieux said.|ret||ret||tab|

He said that Southwestern Bell is not fully in compliance with some rules for operating among competitors, and it is impeding competition in that manner.|ret||ret||tab|

"I think there is limited benefit to customers from Southwestern Bell's entry into the long-distance market. There is sufficient competition in that market already, and I think it would certainly be a detriment if they were allowed to enter before they have complied with the requirements of federal and state law here in Missouri," Cadieux said.|ret||ret||tab|

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