Dept. of Justice told FCC it had concerns about SBC’s request to ...
Dept. of Justice told FCC it had concerns about SBC’s request to offer long distance services in Mo. because carrier might not be treating competitors fairly. In May 4 filing with FCC, which was publicized Wed., DoJ questioned whether…
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prices SBC charged competitors for unbundled network elements (UNEs) were cost-based, adding that many prices in Mo. were “significantly higher” than in Kan., Okla. and Tex., states where SBC already has won Sec. 271 entry into long distance business. “Moreover, competitive entry using UNEs to reach residential customers is almost nonexistent, suggesting that entry may have been impeded by above-cost rates,” DoJ said. Before FCC makes decision on SBC’s petition, it should “undertake an independent scrutiny” of prices charged by SBC to competitors, rather than relying on Mo. PSC price-setting decisions, DoJ recommended. Dept. also expressed concerns whether SBC was “in compliance with its resale obligations,” particularly its resale of advanced services such as DSL, and urged FCC to “further investigate” company’s resale practices. Sec. 271 of Telecom Act requires FCC to consult with DoJ before determining whether Bell company should gain long distance entry. SBC Senior Vp Priscilla Hill-Ardoin said company was pleased that DoJ focused on only 2 issues, both of them areas where SBC believed it was on firm ground. She said Mo. PSC conducted extensive proceedings for 2-1/2 years to set rates based on FCC principles. She said company also believed it was in compliance with recent ASCENT decision by U.S. Appeals Court, D.C., on resale of advanced services.