SWB refiles application to sell long distance

If Southwestern Bell has its way, by next spring local telephone users could have one more option to consider when choosing a carrier to provide long-distance service. The company recently filed a supplemental application with Missouri's Public Service Commission to enter the long-distance market.

"Missouri's leaders favor a competitive marketplace," said Jan Newton, president of Southwestern Bell-Missouri in a statement announcing the move. "Southwestern Bell's entry into the long-distance market is an extension of their vision for a truly competitive marketplace in Missouri."

Southwestern Bell spokesman Mike Peterson said the June 28 application was merely an update to the company's original application filed nearly two years ago.

"We originally filed on November 20, 1998," Peterson said. "But after hearings by the PSC, we decided to pull the application back in order to focus on an application previously filed in Texas."

Peterson said the process that would allow Southwestern Bell to enter the long-distance market in Texas had nearly run its course. He said local regulatory bodies had endorsed the application and forwarded it to the Federal Communication Commission. A ruling is expected by July 5.

"With that situation under control, we thought it was time to focus again on Missouri," Peterson said.

The PSC will have 120 days to consider Southwestern Bell's application. If it approves, the application will go to the FCC in Washington, D.C., which will have 90 days to make a ruling or recommendation. Part of the process, Peterson explained, is a review of the application by the Department of Justice.

"The Federal Communication Act of 1996 requires the FCC to give substantial weight to their recommendations," he said. "We believe our application in Texas was the first one ever approved by the Department of Justice."

The Federal Communication Act of 1996 allowed Southwestern Bell to provide long-distance service in Missouri if it could meet certain requirements, Peterson said. The first is that the local market is open to competition; the second is assurance that the existing infrastructure can process the orders for service.

"We believe there is substantial competition," Peterson said. "There were 56 companies certified by the PSC to provide local service when we filed our application originally. Today, there are at least 133 companies."

During the Texas application process, Peterson explained, a review of Southwestern Bell's infrastructure included Missouri.

"The Texas Public Utility Commission conducted an exhaustive, 22-month test called the Telcordia Test," Peterson said. "They concluded that existing infrastructure could handle the volume of Missouri orders. The PSC will contract with an outside auditor to validate those test results."

Southwestern Bell's service area includes all or part of five states: Arkansas, Kansas, Missouri, Oklahoma and Texas. Peterson said Texas, if approved by the FCC, would be the first state in which Southwestern Bell would be allowed to provide long-distance service.

Peterson believes the addition of Southwestern Bell to the long-distance market would benefit consumers through increased competition and simplicity.

"Increased competition generally lowers prices," Peterson said. "And we'll be able to provide customers the simplicity of one-stop shopping for all their telecommunication needs: local and long-distance service, Internet, and wireless service all on one bill."