GROUP URGES REJECTION OF BELL'S MISSOURI LONG-DISTANCE EFFORT

A coalition of telecommunications businesses has urged the Missouri Public Service Commission to reject Southwestern Bell's request to offer long-distance service in the state.

"That's a little premature," said a Southwestern Bell spokesperson. "We haven't filed for permission to offer long-distance in Missouri yet."

The coalition says that since local telephone markets remain closed in much of Missouri, Southwestern Bell fails to meet requirements of federal law that local competition exist before it can enter long-distance markets.

The coalition is called the Missouri Telecommunications Coalition. It includes AT&T, Birch Telecom, MCI, Brooks Fiber Properties, Kansas City Fibernet, Missouri Cable Telecommunications Association, Comp TEl, World Co., CGI, Missouri Independent Coin Payphone Association and Telecommunications Resellers Association.

Meeting Monday with the Public Service Commission, Southwestern Bell officials -- including its Missouri division president, Priscilla Hill-Ardoin -- said the company would file an application to provide long-distance service within a few weeks.

An application this month would be premature, said Diane Miller, a coalition spokesperson. "Federal law requires them to give up their monopoly on local service before they can get into long-distance. They have failed to meet this test."

AT&T officials have accused Southwestern Bell of dragging its feet in negotiating interconnection agreements. Bell officials deny that, saying the company has offered agreements to resell local services to local competitors.

"We have 23 interconnect agreements now," said Amy White, a spokesperson for Southwestern Bell-Missouri. "A competitor can move in tomorrow."

Southwestern Bell dominates the local market in Missouri with more than 2.7 million access lines, or more than 95 percent of all local lines. It contends, however, that other companies are hesitant to enter the local market because of the lower profit factor.

Steve Weber, state governmental relations director for AT&T, said AT&T is working toward entering the local market.

AT&T is the primary long-distance carrier in the U.S., with 50 percent of the long-distance business.

Weber said AT&T wants to get into the local market, but it isn't economically viable to take a Southwestern Bell interconnect agreement.

"We can't be competitive if we go in and resell Southwestern Bell service," said Weber. "We are looking into other options."

The Missouri Telecommunications Coalition claims that Southwestern Bell has fiercely protected its monopoly in local telephone services.

"We urge the Public Service Commission to preserve its commitment to competition by immediately and forcefully rejecting this premature application," said Miller. She said should the Public Service Commission approve the application, there would be no incentive for Southwestern Bell to further open its local markets.

"Approval of an application would allow Southwestern Bell to have its cake and eat it too," said Miller.

Southwestern Bell has said it would offer 20 percent discounts on long-distance service. Probably two-thirds of AT&T customers already have 20 percent or more discounts with all of AT&T's special offerings, said Weber.

The long-distance market in Missouri is crowded: More than 450 carriers have entered the market, which has doubled in size since 1984.

Southwestern Bell has filed long-distance applications in Oklahoma, Arkansas and Kansas and is awaiting rulings in Arkansas and Kansas. The Oklahoma Corporation Commission approved the long-distance request, but the FCC denied the company long-distance access in Oklahoma for now.