Deals may increase local competition

An update on local exchange competition shows that the number of interconnection agreements between incumbent carriers and competitors has nearly tripled, from 440 to 1231, since February. The numbers ranged from three agreements in Alaska to 79 in Florida.

The report counters long-distance carriers' complaints of delays by local exchange carriers in opening their markets to competition, said Roy Neel, president and chief executive officer of the U.S. Telephone Association.

"AT&T's and MCI's problems have not been foot-dragging by local telephone companies but their own ineptitude," particularly in marketing, he said at a Washington press briefing.

The ongoing battle of words and dollars reflects a dispute over how much local competition is enough to trigger Bell companies' ability to sell long-distance service in their territories. The Telecommunications Act of 1996 lets the Bell companies enter that lucrative market, but only if they face sufficient competition on the local level.

FCC Chairman Reed Hundt last week formed a task force to investigate delayed telecom competition and to punish players who aren't meeting the act's requirements.

Enforcement actions could include monetary penalties and a regulatory version of a temporary restraining order, according to a published report.

Although the USTA has no problem with the task force, Neel voiced concern about the objectivity of its investigation.