SBC spreads long distance wings

(Telephony) SBC became the first regional Bell operating company to win Section 271 approval in multiple states when it was given the go-ahead by the FCC late Monday to offer long distance services in Kansas and Oklahoma. It also marked the first time the FCC approved a joint application for two states simultaneously. SBC last year won approval to offer long distance service in Texas.

In a unanimous, but not undisputed decision, the FCC said it was satisfied that SBC had opened up its network to competitors and met the 14-point checklist required under the 1996 Telecom Act. Specifically, the commission cited the fact that competitors serve between 9%-12% of all local access lines in Kansas and 5%-9% in Oklahoma.

Because the Commission relies on pricing amendments that were filed while SBC’s application was pending, the Commission’s authorization of SBC’s application will become effective 43 days after release of the Order to ensure that SBC does not receive the benefits of late-filed changes to its application.

In one of his final acts before leaving the chairmanship, William Kennard, who voted in favor of the application, praised the Kansas and Oklahoma PUCs for their work in using the Texas application as a model.

“This process demonstrates that smaller, less urbanized states can successfully fulfill their vitally important role in the section 271 process without overwhelming their regulatory resources,” he said in a statement.

However, not all commissioners were applauding the approval. Commissioner Michael Powell, tapped by President Bush to fill Powell’s seat, said he supported the approval but dissented on the condition that SBC not be allowed to offer service until 43 days after release of the order. The stipulation was added because the Commission relied on pricing amendments that were filed while SBC’s application was pending.

“I am very supportive of the intention underlying this decision, as I agree that we must remain vigilant to protect the integrity of the section 271 process against unnecessary delays in the filing of relevant evidence, even pricing evidence,” Powell said in a statement. “Nonetheless, I see no authority in the [Telecom] Act that permits us to conclude that the statutory requirements are satisfied, but refuse to allow the applicant to enter the long distance market for several more weeks.”