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Bell Atlantic Faces Competition Hurdle in Long-Distance Entry

Strategic Insights

— 1 min read

Bell Atlantic, the nation's largest regional phone company, is facing skepticism from the Justice Department regarding its preparedness to open competition in New York's local phone market before entering the long-distance market. The Justice Department's filing with the Federal Communications Commission (FCC) raises concerns that Bell Atlantic must meet before it can offer long-distance service to its local customers. This development comes as Bell Atlantic seeks FCC approval to offer long-distance service in New York, which would make it the first regional Bell company to do so.

Bell Atlantic's application is subject to FCC approval or rejection by December 28. The company's officials have expressed confidence in meeting the deadline, with its general counsel, James Young, describing the Justice Department filing as "generally an endorsement." However, the filing highlights the need for Bell Atlantic to demonstrate its commitment to opening its local markets to competition before expanding into long-distance services.

Key Takeaways:

  • The Justice Department has expressed concerns about Bell Atlantic's readiness to open competition in New York's local phone market.
  • Bell Atlantic is seeking FCC approval to offer long-distance service in New York, a move that would make it the first regional Bell company to do so.
  • The company must demonstrate it has opened its local markets to competition before branching out into long-distance services.
  • Bell Atlantic's general counsel, James Young, has described the Justice Department filing as "generally an endorsement."
  • The company faces a deadline of December 28 for the FCC to approve or reject its application.
  • Bell Atlantic's officials have expressed confidence in meeting the deadline.

Statistics:

  • Bell Atlantic manages about 5 million acres of forests in the United States.
  • The sale of Bell Atlantic's California timberlands is expected to be completed by the end of the year.
  • American Media is expected to acquire Globe Communications Corp. for $100 million in cash.
  • The price of the acquisition is five times Globe Communications' annual cash flow of about $20 million.
  • Bell Atlantic's application is subject to FCC approval or rejection by December 28.

Sources:

  • The New York Times
  • Justice Department filing with the Federal Communications Commission (FCC)
  • Bell Atlantic
  • James Young, Bell Atlantic's general counsel

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