Florida commission rejects structural separation of BellSouth

The Florida Public Service Commission (PSC) today rejected AT&T’s petition asking for the structural separation of BellSouth’s wholesale and retail operations.

According to Joe Lacher, president of BellSouth Florida, the commission in its recommendation indicated there was no proof that BellSouth had engaged in the type of improper business activities that would have warranted structural separation.

“The PSC has been very proactive in its efforts to open the Florida market and has addressed the concerns and issues that the competitors have [cited] as possible barriers to entry,” he said in a statement.

Robert Saunders, an analyst with the Eastern Management Group, said the PSC decided it lacked the jurisdictional authority to rule on structural separation, a decision he found to be a “bit of a surprise,” because the PSC staff “had just written a report” after a workshop on the subject that indicated just the opposite.

However, Lacher said BellSouth had made “a strong argument” that there is no provision in Florida law that allows for “this type of directive to be made by the PSC.”

Saunders also said AT&T failed to make the case that structural separation would benefit Florida consumers or that competitive carriers have been harmed by BellSouth’s current business practices.

“The PSC viewed the petition as an obviously punitive measure toward BellSouth,” he said.