FCC APPROVES BELLSOUTH'S FIRST SEC. 271 APPLICATION
FCC approved BellSouth’s first Sec. 271 application, voting 4-0 to let company offer long distance service to customers in Ga. and La. In announcement late Wed., agency said BellSouth could start offering service May 24. “BellSouth is ready to be in the long distance business,” CEO Duane Ackerman said. “Our networks are ready, our employees are ready and our customers soon will realize why this is a watershed event.” BellSouth said 27% of its customers were located in Ga. and La. and long distance market there was worth $4 billion. Company said it would file another multistate application at FCC “within weeks.” It already has state approvals for Ky., Miss., S.C.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Comr. Copps issued separate statement, saying “this was a close call” because BellSouth “only minimally passes the statutory checklist” on several items including operations support systems and process for updating those systems. He said agency expected BellSouth to improve and “work cooperatively with other carriers through their business-to- business relationships to resolve any issues that develop.” That means FCC’s “statutory duty to ensure that BellSouth continues to comply with its obligations… takes on even greater importance,” Copps said.
Under Sec. 271 of Telecom Act, Bell companies must show they have opened their local markets to competition before they can gain approval to enter long distance business. BellSouth filed its Sec. 271 application for Ga. and La. Feb. 14, which was 2nd time around. Company withdrew earlier petition Dec. 20 after FCC officials indicated they had concerns about some parts of it. Justice Dept. recommended approval March 21 although it expressed some reservations about company’s operations support systems (OSS) and how it reported performance metrics.
FCC said in news release that approving BellSouth’s application “promises substantial benefits for the states’ consumers in the form of enhanced competition in both the local and long distance markets.” Competing carriers have 912,000 lines in Ga., 828,000 of them using competitors’ own facilities, FCC said. Competitors have 225,000 lines in La, 155,000 of them served by CLECs using own facilities, agency said. FCC has given Bells approval to offer in-region long distance service in 13 states so far and applications for 2 more -- Me. and N.J. -- are pending.