FCC authorizes BellSouth long distance in five states

The Federal Communications Commission announced Sept. 18 that it voted to approve BellSouth's multistate application to provide in-region, interLATA service originating in Alabama, Kentucky, Mississippi, North Carolina and South Carolina. Approval of BellSouth's multistate application promises substantial benefits for the states' consumers in the form of enhanced competition in both the local and long distance markets.

According to BellSouth, competitive local exchange carriers provide facilities-based local service to some 202,149 lines in Alabama, 93,252 lines in Kentucky, 84,637 lines in Mississippi, 353,542 lines in North Carolina, and 143,471 lines in South Carolina.

In addition, BellSouth states that competitive LECs have gained double-digit market share in Alabama (11.9 percent), North Carolina (13.4 percent) and South Carolina (11.8 percent), and have gained nearly as much market share in Mississippi (8.4 percent) and Kentucky (8.4 percent).

With the Telecommunications Act of 1996, Congress envisioned fundamental, pro-competitive changes in the telecommunications markets by making a Bell Operating Company's entry into the long distance market subject to the BOC first opening its local service monopoly to competition. A BOC satisfies this contingency by demonstrating compliance with section 271 of the 1996 Act. After a BOC files a section 271 long distance application with the FCC, the FCC has 90 days to determine whether a BOC has taken the statutorily required steps to open its local telecommunications markets to competition, including compliance with the 1996 Act's section 271 14-point "competitive checklist."

Since the passage of the 1996 Act, the FCC has denied five long distance applications and now has approved applications to provide in-region, long distance service in 20 states. Additionally, applications for 16 states have been withdrawn. Currently, there are section 271 applications for three states Verizon's joint application for New Hampshire and Delaware and Verizon's Virginia application pending before the Commission.

The FCC emphasizes that BellSouth must continue to comply with the section 271 checklist requirements, and the FCC has a number of enforcement tools at its disposal to ensure compliance, including imposing penalties or suspension of approval.