SBC re-enters long-distance market

|tab|

The growing pains have eased for SBC Communications Inc.'s Southwestern Bell. |ret||ret||tab|

After a hard-fought battle, the local phone service carrier is now offering long distance in Missouri and Arkansas. |ret||ret||tab|

The Federal Communications Commission Nov. 16 approved SBC's application for service in the two states. Southwestern Bell officially launched long distance service in Missouri Dec. 7. |ret||ret||tab|

|ret||ret||tab|

Show Me competition|ret||ret||tab|

Prior to the FCC's unanimous approval, Southwestern Bell spent three years proving to the Missouri Public Service Com-mission that Missouri was an open market a mandatory re-quirement of the Telecommuni-cations Act of 1996.|ret||ret||tab|

The act states that all regional Bell companies are required to prove to state and federal regulators that their local phone markets are open to competition before being allowed to offer long distance services there, satisfying a 14-point checklist.|ret||ret||tab|

"We had to meet all of the specifications to prove that our markets were open to competition on a state-by-state basis," said Pat Bly, SBC Southwestern Bell regional director of external affairs. |ret||ret||tab|

To that end, Bly said, the in-ternational professional service organization Ernst & Young performed an audit of South-western Bell's operating systems.|ret||ret||tab|

"The FCC laid out the guidelines and it took a long time for us to have all the documentation to prove ... that we've met all 14 points," he added.|ret||ret||tab|

According to Brian Kruse, SBC Southwestern Bell spokes-person, competitive carriers in Missouri have gained more than a 15 percent share of the market, and an even higher share of the business market.|ret||ret||tab|

Bly said the Missouri PSC was addressed first "because the FCC wants to see if the local state agrees with the regional operating company that it's open (to competition). (Mis-souri PSC) came back unanimously and said, Yes, it would be best for consumers to allow (Southwestern Bell) in.'"|ret||ret||tab|

|ret||ret||tab|

Convergence|ret||ret||tab|

The last time Southwestern Bell of-fered long distance in Springfield was 1984.|ret||ret||tab|

That service was squelched when AT&T split into seven regional Bell op-erating companies: Southwestern Bell, Bell Atlantic, Bell South, NYNEX, Pa-cific Telesis, U.S. West and Ameritech. Those seven regional Bell carriers are now four, with mergers and acquisitions creating SBC, Verizon, Bell South and Qwest Communications.|ret||ret||tab|

The incentive to return to long-distance service in Missouri was clear: the state's residential and business long distance market is worth approximately $1.49 billion, Bly said. He added that Southwestern Bell has a total of about 2.4 million access lines in the state.|ret||ret||tab|

Since the breakup of AT&T, South-western Bell has been coming into its own, Bly said.|ret||ret||tab|

Employed with Southwestern Bell since 1978, "I've gone through the complete change from pre-divestiture, through divestiture and up to this point," Bly said.|ret||ret||tab|

SBC is now the nation's second largest local phone service carrier, based on number of access lines, behind Verizon. Its subsidiaries include Ameritech, Pa-cific Bell, Nevada Bell, Southern New England Telephone and Sterling Com-merce, which provide long distance to 4.6 million access lines. The corporation also owns a 60 percent share of Cingular Wireless.|ret||ret||tab|

Because Arkansas also was included in the FCC approval, Southwestern Bell now has regained long-distance ability throughout its original five-state territory, the first "Baby Bell" company to do so, Bly said. The phone company already offered long distance in Texas, Kansas and Oklahoma.|ret||ret||tab|

"This does cause the whole marketplace to be more competitive," Bly said. "When another competitor enters, everybody has got to adjust, so that's good for ... all of our consumers." More options often create lower prices, he added.|ret||ret||tab|

|ret||ret||tab|

Employment|ret||ret||tab|

However more options don't translate immediately into more jobs in Spring-field. Bly said it depends on the amount of customer growth experienced before any new positions are added.|ret||ret||tab|

According to Mary Turton, South-western Bell area manager, the local office at 600 E. St. Louis can accommodate about 200 service representatives, and approximately 130 positions are filled.|ret||ret||tab|

Turton added that new hires are not taken lightly because of the expenses involved.|ret||ret||tab|

"It costs approximately $70,000 per employee to get them fully trained and out on the desk," Turton said. The training process takes 14 to 16 weeks, she said, and right now the company is not hiring.|ret||ret||tab|

According to a Nov. 16 release from the FCC, the approval promises substantial benefits for the states' consumers by creating competition in both the local and long distance markets. |ret||ret||tab|

"We're convinced once Missourians add our long distance service, they won't miss their long-distance company," ad-ded Jan Newton, president of SBC Southwestern Bell in Missouri. |ret||ret||tab|

In fact, that is the theme carried out in the company's new advertising campaign that will begin airing soon. Bly said Mis-souri customers also will be notified through direct mail.|ret||ret||tab|

At press time, Bly could not say how many long distance accounts had been accumulated by Southwestern Bell since Dec. 7, only that "it's happening very fast."[[In-content Ad]]