Qwest, BellSouth edge closer to long-distance approval

The regional Bell operating companies, like all telecom providers, are struggling financially right now. However, one area where they are continuing to enjoy some success is in the long-distance approval process.

Last month, Qwest and BellSouth made progress in their long-distance applications, winning recommendations from the Department of Justice. Gaining Justice Department approval is an important step along the path to eventual final approval by the Federal Communications Commission.

Under the Telecommunications Act of 1996, the RBOCs must prove that there is competition in states where they are the incumbent local provider before the RBOCs are able to offer long-distance services. Verizon, SBC and BellSouth are already offering long-distance services in some of their local states, but no RBOC has won approval for all of its local states.

Qwest has not yet won approval in any of its local states. Acceptance of its five-state submission by the FCC would be a much welcome boost for Qwest.

If BellSouth's five-state submission is approved, BellSouth would have all but two of nine local states approved for long-distance. Once BellSouth gets approval for all nine of its local states, the rumors of a BellSouth/AT&T merger might actually heat up again.

No RBOC is likely to merge with a long-distance provider before it gets long-distance approval in its local states, because after a merger, the RBOC would need to give up all long-distance customers in states where the RBOC did not have long-distance approval.

Critics will say that letting the RBOCs into the long-distance market too easily will hurt competition. But given the current state of the long-distance market, the RBOCs may be able to bring some much-needed stability.

Denise Pappalardo is a senior editor for Network World, covering ISPs, VPNs and related topics. Reach her at denisep@nww.com.

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