Federal regulators’ decision Wednesday to reject BellSouth Corp.’s application to offer long-distance service in South Carolina demonstrates anew the difficulties that Baby Bells face in their efforts to break into the business.
The action by the Federal Communications Commission was the third time the agency has blocked a Baby Bell from offering long-distance service. Industry analysts predict more such rejections before the agency lets Bell companies into the $70 billion-a-year long-distance market.
The FCC last summer denied Chicago-based Ameritech Corp.’s application to offer long-distance in Michigan and SBC Communications Corp.’s application for Oklahoma.
The FCC said BellSouth still hasn’t done enough to let rivals compete for local phone service. The Bells must open their markets and prove they already face true competition for local service before they can offer long-distance service in their home territories.
Although the Bells say they have done what’s required to open their markets and become eligible to offer long-distance service, the FCC interprets the law differently.
