WASHINGTON — SBC Communications asked federal regulators today for approval to become the second Baby Bell to offer long-distance service to its local customers.
Hot on the heels of a decision by the Federal Communications Commission to let Bell Atlantic provide long-distance in New York, SBC filed an application with the FCC seeking to do the same in Texas.
SBC officials said the company had more than met the prerequisite for being allowed to offer long-distance to local customers. Under a 1996 telecommunications law, a Bell company must first open its local phone business to competition before it can offer long-distance in its calling region.
"Competition is quite vigorous in the state of Texas as a result of the processes that have been put into place," said Jim Shelley, president of SBC regulatory affairs.
As evidence of that, rivals to SBC have signed up 1.4 million customers in the state, he said.
"I feel confident that after almost 2 years, we are in a position to make a very strong showing to the FCC," he said.
SBC wants to position itself to complete the bundle of services — local phone, Internet and satellite television — it already offers Texas customers. Long-distance calling would enable the company to round out its package. While not tipping their business plans, company officials pledged that their future long-distance customers would not be charged a minimum monthly fee.
"I think you can expect our company to be a very aggressive and innovative competitor in this market," Shelley said.
Before it can do that, the company must win approval from the FCC. The commission has 90 days to decide on the application. It must give substantial weight to an evaluation by the Justice Department. The Texas Public Utility Commission also will have an opportunity to weigh in.
Texas regulators already gave their unanimous approval in December to SBC's plan, with the commission's chairman declaring that the company had opened its local markets to competitors. That important endorsement will help boost SBC's proposal at the FCC.
SBC filed its application with state regulators in March of 1998. Officials said the company has undergone extensive reviews and tests since then. A third-party operator was also brought in to ensure that SBC was properly processing orders from rivals seeking to switch customers to their service.
Company officials said the tests determined that SBC systems were treating competitors fairly.
Southwestern Bell operates SBC's Texas business. SBC phone systems cover most of the Southwest and Midwest. Its other units include Pacific Bell, Nevada Bell, and SNET in Connecticut.
Bell Atlantic last month became the first Bell company to offer long-distance to its local customers since the passage of the 1996 Telecommunications Act. That law permitted cable, local and long-distance companies to get into each others' businesses.