SBC TO FILE SEC. 271 APPLICATION AT FCC TODAY
At our deadline, SBC/Pacific Bell said it planned to file its Sec. 271 InterLATA long distance petition for Cal. at FCC today (Sept. 20) following Cal. PUC decision Thurs. to support its application. PUC found Pac Bell in substantial compliance with Sec. 271 checklist and, if FCC agreed, PacBell could be in long distance by end of year. Major issue between Pac Bell and PUC endorsement was whether Telecom Act required Pac Bell to offer high-speed DSL for resale. Pac Bell and PUC disagreed on whether DSL resale was FCC requirement for Telecom Act compliance, so they reportedly will leave that issue to FCC for resolution. There also were issues on state law requirements for long distance certification, but FCC isn’t required to pay attention to them in order to grant Pac Bell long distance authority.
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Pac Bell is anxious to get into $13 billion Cal. long distance market, largest in nation. State has some of lowest unbundled network element (UNE) rates in country and CLECs have been taking advantage of low UNE prices to make inroads into Pac Bell’s core markets. PUC has proceeding pending to set permanent UNE rates, and Pac Bell has sought increases, but no decision is likely before March at earliest.
Pac Bell called PUC’s 4-1 vote to endorse its 271 bid “a great day for California consumers.” It said PUC had conducted “very detailed and thoughtful review” of case and praised assigned Comr. Geoffrey Brown’s leadership in managing process. Pac Bell said local competition was established fact in Cal., with more than 100 CLECs collectively serving 2.5 million (13%) of state’s access lines. Fact that PUC split on endorsement need not work against Pac Bell. Pa. PUC split 3-2 when it voted to support Verizon long distance entry but FCC granted authority after considering PUC majority’s findings.
SBC Senior Vp-FCC James Smith said company would file application with FCC this morning (Fri.). “We believe we have a very strong application in terms of competitive showing,” he said. “California has more competitors than any other state so far” that has gone through Sec. 271 process at FCC, he said. He said Cal. PUC had “thoroughly vetted” SBC’s actions to open its local network to competition.