The Federal Communications Commission has the authority to decide when local phone companies can offer long-distance service to their customers, a federal appeals court in Washington ruled Friday.
The decision came in a case stemming from the FCC’s denial of a petition by SBC Communications Inc. to offer long-distance in Oklahoma after the FCC found SBC failed to open its local markets to competition. The 1996 telecommunications law clearly gives the FCC this authority, the appeals court ruled.
The ruling could signal trouble for another case brought by San Antonio-based SBC. In that one, a federal judge in Texas ruled that Congress didn’t have authority to place long-distance restraints on Bell companies, as it did in the 1996 law. That ruling has been appealed.
A spokesman said SBC is unlikely to pursue further appeal of the Oklahoma case.
