Local carriers challenge SWBT screening practice

Area telephone companies want the Missouri Public Service Commission to end what they call anti-competitive actions taken by incumbent local service providers.

Competitive local exchange carriers companies such as McLeod USA and Gabriel Communications in Springfield are asking the PSC to put a stop to anti-competitive tactics of incumbent local exchange carrier Southwestern Bell under the purview of a program called Metropolitan Calling Area.

The PSC is now holding a series of hearings on MCA, the flat-rate calling plan available to customers in metropolitan areas. MCA is available and has subscribers in Springfield, as well as in Kansas City and St. Louis.

The PSC held a hearing in Springfield March 27 to hear the comments of residents and telephone company representatives. The commission is now investigating what changes need to be made to the program to make it viable in today's competitive telecommunications marketplace.

The plan was established in 1992 by the commission. It allows toll-free calling within a given metropolitan area. The service is provided automatically, as a part of local service, to customers within the center zone and initial tiers of service, and as an option, for a subscription fee, to customers in the outer metropolitan area.

Local exchange carriers in this area that are competing with Southwestern Bell for telephone customers say they are not opposed to the plan itself, but to what they call anti-competitive practices Southwestern Bell has undertaken.

Edward Cadieux, executive director, regulatory and public affairs for Gabriel Communications, provided the following testimony about MCA to the commission:

"In a series of positions and actions, including but not limited to the screening and blocking of calls to certain customers of competitive local exchange carriers, SWBT has attempted to erect barriers to competition within the MCA, in violation of key elements of federal and state law and regulations.

"SWBT improperly attempts to justify its anti-competitive tactics based on the fact that the commission has not directly revisited and modified the MCA system since its 1992 order. It is clear to Gabriel, and I believe to competitive carriers generally, that SWBT will not be deterred from this conduct without unequivocal direction from state and/or federal regulators."

The commission is seeking ways to adjust the plan so it is more competition-ready. This might ultimately result in rate adjustments for most subscribers, who could pay up to $2 more per month for the service. And 3 percent of MCA customers could pay as much as $6 more per month, according to a PSC release.

Brad Kruse, associate general counsel for McLeod USA, said his company, like Gabriel, is not opposed to the MCA plan in any form.

"This is not a case of the (competitive local exchange carriers) getting together and saying to the PSC, We want this MCA thing to go away.' This is a case of our asking the commission to enter an order that requires Southwestern Bell to stop engaging in these screening practices," Kruse said.

Kruse said Southwestern Bell's screening practices often result in tolls for MCA subscribers who are customers of facilities-based competing companies.

"It only affects the network customer. So, in other words, if you are a reseller of Southwestern Bell, you don't have a problem," Kruse said.

McLeod intends to become a facilities-based provider of telecommunication services in Springfield, as well as in Kansas City and St. Louis, having installed switching equipment in those areas, Kruse added. The company now resells Southwestern Bell's service in Springfield.

Kruse said McLeod "will participate in whatever plan is available. Our goal is to get access to MCA as soon as possible in an environment that is proper for us to effectively compete."

Mike Peterson, a spokesman for Southwestern Bell, said the company is seeking ways to work out the details of the MCA plan with the competitive companies.

"Right now, we are looking at how we can factor in competitors in the MCA plan and that's what's driving the commission to look at the plan. We are looking forward to creating an environment that is fair to all competitors," Peterson said.