Justice Department rejects SBC long-distance service request

The U.S. Department of Justice on Tuesday dealt local phone giant SBC Communications a stinging blow when it recommended that the company not be allowed to offer long distance service in Texas.

SBC's long distance push has become one of several key regulatory telecom battlegrounds where entrenched players are seeking to break in to new markets.

Using the background of Bell Atlantic's entry into the long distance market, SBC recently petitioned the Federal Communications Commission (FCC) to let the company offer long distance first in its home state of Texas.

Bell Atlantic recently won government approval to offer long distance in New York. But the Justice Department reportedly is preparing to tell FCC not to grant SBC's request, sources confirmed.

Both SBC and Bell Atlantic made their push into the long distance market after declaring their own local markets friendly to competition.

The Telecommunications Act of 1996 - which just saw its fourth anniversary - required local Bell companies to comply with stringent competitive checklists before their petitions to enter long distance markets could be considered.

Meanwhile, long distance giant AT&T has won the government's blessing to offer local service in New York.

SBC Communications Inc., in San Antonio, Texas, is at www.sbc.com.

This story from Infoworld.com Copyright © 2000 InfoWorld Media Group, Inc.

SBC will sell Infonet global data services
Network World, 01/21/00.

SBC slapped with penalty in Texas DSL competition case
Network World, 09/27/99.