FCC closes long-distance door on SBC

SBC Communications Corp. may go to court to break into the long-distance business in Oklahoma, following federal regulators' rejection of its application last week.

Ruling two weeks before its deadline, the Federal Communications Commission denied SBC's bid to become the first Bell regional holding company to sell long-distance service in its territory, citing the carrier's failure to open its local markets to competition, as the law requires.

Although the Oklahoma Corporation Commission approved SBC's plan, almost everyone else opposed it. The FCC followed the U.S. Department of Justice's opinion, issued last month, that the RHC did not meet the requirements of the Telecommunications Act of 1996. AT&T, MCI and competitive local exchange carriers had also called for rejection, saying SBC's application was premature.

SBC failed to show that it faces competition from a facilities-based LEC that provides services to residences and businesses, the FCC said. SBC's evidence - an interconnection agreement with Brooks Fiber Properties - failed to meet legal standards because Brooks serves only four employees on a test basis and does not sell residential service in Oklahoma, the agency ruled.

The FCC also said that SBC could not follow "Track B," an option that lets RHCs sell in-region long-distance service if they're ready to connect with rivals but haven't received requests to do so. In fact, potential competitors have asked SBC to let them connect to its local networks in Oklahoma, the FCC said.

SBC defended its position. "Southwestern Bell will immediately pursue this fight," said David Lopez, president of Southwestern Bell of Oklahoma. SBC could go to court or file a new application.