Bell Atlantic Secures FCC Approval for Long-Distance Service, Plans Rapid Expansion

Strategic Insights -

Bell Atlantic, a major telecommunications provider, has secured Federal Communications Commission (FCC) approval to offer long-distance telephone service in New York. In a conference call with reporters, Chairman Ivan Seidenberg expressed confidence in the company's plans to capture a significant market share and roll out the service early next year. Seidenberg outlined the company's ambitions, stating that they aim to target 1 million customers in the year 2000 and capture 25 percent to 30 percent of the market share by the end of next year.

Key Takeaways:

  • Bell Atlantic has secured FCC approval to offer long-distance telephone service in New York, marking the first time a Bell company has been permitted to do so since 1984.
  • The company plans to roll out the service early next year, targeting 1 million customers in the year 2000.
  • Bell Atlantic aims to capture 25 percent to 30 percent of the market share by the end of next year.
  • The company will offer long-distance service at competitive rates and eventually bundle it with local service.
  • Bell Atlantic will start by targeting consumer customers, then move to business customers after establishing a core consumer long-distance base.
  • Officials have filed applications with the FCC for entering the long-distance markets in Pennsylvania and New Jersey within the next few months.
  • The company has already filed for access to the Massachusetts long-distance market.
  • Bell Atlantic officials emphasized the importance of the company's DSL affiliate plan, which was a key factor in the commission's approval.
  • Rival DSL provider Covad Communications has sued Bell Atlantic, charging that the company is engaging in anti-competitive practices.
  • AT&T has announced plans to file a lawsuit challenging the FCC's decision, citing concerns that Bell Atlantic has not fully opened up its markets to competition.

Statistics:

  • Bell Atlantic aims to capture 26.5% of the market share by the end of next year.
  • The company plans to roll out the service to 1 million customers in the year 2000.
  • Bell Atlantic has already filed applications for entering the long-distance markets in Pennsylvania, New Jersey, and Massachusetts.
  • The company's DSL affiliate plan was a key factor in the commission's approval.
  • AT&T has sued Bell Atlantic on multiple occasions, including a recent lawsuit challenging the FCC's decision.

Sources:

  • "Bell Atlantic Applies for Long-Distance Approval in Massachusetts and Pennsylvania" by Newsbytes.com (Date unknown)
  • "Bell Atlantic Completes Long-Distance Deal in New York State" by Newsbytes.com (Date unknown)
  • FCC Website
  • Bell Atlantic Corporate Website
  • AT&T Corporate Website
  • Covad Communications Corporate Website