NEW ORLEANS - BellSouth Corp.'s plan to begin selling long-distance telephone service in Louisiana next week likely will increase competition not only for interstate calls, but for local telephone service, the company said Thursday. <br>
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On Wednesday, the Federal Communications Commission approved Atlanta-based BellSouth's application to sell long distance in Louisiana and Georgia, which will allow the company to offer "one-stop shopping" for such services as local telephone, long distance and high-speed Internet hookups. <br>
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Nonregulated long-distance service has been the rule for years, and other local telephone companies in Louisiana, such as Eatel and CenturyTel, and cable television companies that have branched into telephones, already have their own long-distance services. <br>
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But the so-called Baby Bell operating companies, which were broken off from the AT&T telephone monopoly in the 1980s, were not allowed to offer long distance until they showed the FCC that they had opened their local markets to competition, not only from startup companies, but also from such long-distance companies as AT&T and Worldcom. <br>
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BellSouth, which has 2.3 million access lines in Louisiana, plans to begin selling long distance on May 24, the effective date of the FCC order. <br>
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BellSouth regional director Merlin Villar said the company will be on a level playing field with other telecommunications providers. <br>
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"With all of our customers, we have been at a disadvantage," he said. "Especially with our business customers. They want to have it all together (on one bill). In those cases, we've had to partner with a long-distance company. When you partner with someone else, they get the revenue. You do it as a matter of convenience to the customer." <br>
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BellSouth estimates there is a $4 billion annual market in Louisiana and Georgia for long-distance and data-transport services. Some consumer groups have voiced fears that allowing the Baby Bells into the long-distance market might result in "re-monopolization" and drive out competitors. <br>
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Villar said the opposite will happen. <br>
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"I suspect that you are going to see more competition, not only where the incumbent long-distance companies pick up their marketing, but where long-distance companies get into local markets," he said. "Every place where a Bell company has been approved for long distance, the competition for long distance and local service has increased to the obvious benefit of the consumer." <br>
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Although long-distance carriers constantly are hitting the public with various rate plans, Villar said convenience is becoming more important for buyers. <br>
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"All of the market research indicates that when long-distance competition first began, lots of people shopped around and switched carriers frequently," he said. "But as rates have fallen, customers are looking for convenience, rather than saving a penny a minute." <br>
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In approving BellSouth's application, the FCC warned that it would be keeping a close eye on the company making its local networks available for competition and would use such enforcement tools as fines and service suspension if it slipped. <br>
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Sylvia Anderson, an AT&T vice president, said the FCC decision was premature and the key to success will be government oversight. <br>
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"Competition can still win out," Anderson said. "It's no sure thing, though, considering BellSouth's 90 percent market share and its well-documented history of unfairly disadvantaging competitors." <br>
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Long-distance calls made from one line to another within Louisiana are not affected by the FCC's action. Rates for those calls are still regulated by the Louisiana Public Service Commission. <br>
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On the Net: <br>
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BellSouth Corp.: http://www.bellsouth.com <br>
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Federal Communications Commission: http://www.fcc.gov <br>
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