Mo. PSC staff reversed its Oct. recommendation on amount of regul...
Mo. PSC staff reversed its Oct. recommendation on amount of regulation that should be put on SBC’s long distance services in state and said it now recommended that Southwestern Bell Long Distance and SBC Long Distance be minimally regulated…
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as competitive long distance carriers. Staff also recommended PSC grant intrastate certificates to SBC units and approve their initial long distance tariffs. Staff in Oct. had recommended SBC units be classed as noncompetitive carriers because they had “opportunities” for potential cross-subsidization of their long distance rates. SBC objected strongly, saying hobbling its units with lengthy tariff reviews and cost-support requirements would thwart their ability to compete against minimally regulated rivals. SBC said there was no factual basis for singling its long distance units out for “disparate” regulatory treatment. Upon further review, PSC staff concluded FCC affiliate rules plus PSC’s ability to suspend and review tariffs upon staff or competitor complaint would be adequate safeguard against below-cost pricing. Long distance units propose residential rates of 6-12 cents per min. and business rates of 8.5-12 cents, depending on calling plans or contract terms. With intrastate access charges at 5.5 cents per minute, PSC staff said proposed rates weren’t below cost. Agency said it would rule on units’ certification and tariffs soon after Nov. 26 effective date of FCC order allowing SBC to provide long distance in Mo. and Ark. PSC had hoped to conclude matter before Thanksgiving, but its review was delayed while it looked into AT&T complaint that proposed rates would constitute predatory pricing. AT&T subsequently withdrew complaint, saying PSC procedural schedule was too compressed to provide adequate opportunity to be heard.