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Toll-call rivals call the Baby Bells big bullies

Article Abstract:

Long distance telephone companies and consumers complain that Baby Bell companies use a variety of unfair competitive tactics to keep rivals out of the local toll-call market. Tactics include the refusal to switch customers to another carrier, heavy access fees and access code requirements. Access fees often are used to tack extra fees on rivals, pricing them out of the market. Baby Bells require customers who wish to use another carrier to dial a confusing series of access numbers, which is a serious deterrent to consumers. Pacific Bell refused to reprogram its Centrex routing software for customer Big 4 Rents Inc to allow the company to avoid access codes for an MCI connection. Consumers and long-distance companies complain that Baby Bells are demanding open competition in the long-distance market, but refuse to open the local toll call market. The Baby Bell tactics work, keeping rivals down to 2% of the market.

Author: Cauley, Leslie
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
Long Distance Telephone Svc, Forecasts and trends, Marketing, T, Long distance telephone services, AT&T Inc., Market trend/market analysis, Long-distance telephone service, American Telephone and Telegraph Co., MCI Communications Corp., MCIC, NYNEX Corp.

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Baby Bells win possible delay of competition

Article Abstract:

The introduction of competition into local telephone markets may be delayed by at least a year. The US Court of Appeals for the Eighth Circuit in Kansas City, MO, has suspended key parts of the FCC's 'interconnection' order, which establishes the rules for connecting competitors to local telephone markets. The court has suspended the pricing and contract rules, which would have provided the new competitors with discounts and other advantages. The decision also places the oversight of the local markets with state regulatory agencies, which is considered to be advantageous to the regional Bell operating companies (RBOC). The court temporarily delayed the enforcement of the FCC's rules in late Sep 1996, but this decision will delay implementation until appeals by the RBOCs and other organizations have been heard by the courts.

Author: Cauley, Leslie, Gruley, Bryan
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
Local Telephone Service, Laws, regulations and rules, Telecommunications regulations, United States. Federal Communications Commission, Local telephone services, Government communications regulation, United States. Court of Appeals for the 8th Circuit

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Subjects list: Telecommunications services industry, Telecommunications industry
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