WASHINGTON-BellSouth Corp. told the Federal Communications Commission last week that since a majority of personal communications services customers in Louisiana said they use their PCS phone to make or receive calls at home, the company should be allowed to offer long distance in Louisiana.
The FCC turned down a similar request made by the local phone company in February. The regional Bell operating company is barred from offering long distance in its region until it meets a test detailed in the Telecommunications Act of 1996.
This is not the first time BellSouth has said PCS was a viable competitor to wireline in Louisiana.
The RBOC made a similar argument in its first filing. The FCC disagreed, saying PCS was not yet a competitor to wireline service. BellSouth attempted in last week’s filing to change the FCC’s mind. Included in the filing was a survey concluding that 65 percent of Louisiana PCS customers make or receive calls at home. Some industry insiders questioned the validity of the study because it did not say what percentage of telephone customers in Louisiana subscribe to PCS.
However, the 65 percent is an increase. A similar survey filed with the company’s first attempt stated 56 percent of PCS customers used the service in their homes.
Would-be competitors in Louisiana decried the PCS argument, noting PCS equipment and service were not on equal par with wireline service because PCS equipment and service are more expensive.
Tauzin’s support
The RBOC received powerful support from Billy Tauzin (R-La.), chairman of the House telecommunications subcommittee, who said customers choosing PCS instead of wireline qualifies as competition.
“As the [FCC] determined in the Ameritech Michigan Order, the number of customers using any service, including PCS, offered by a carrier other than a Bell operating company, is relevant evidence in determining whether the requirements of Track A have been satisfied,” Tauzin said.
The test in the telecom act gives RBOCs two options, known as Track A and Track B, to enter the long-distance market. Track A requires “facilities-based competition.” BellSouth is arguing PCS is facilities-based and Tauzin apparently agrees.
The Personal Communications Industry Association disagreed. “Real competition in the local loop doesn’t exist yet,” said PCIA President Jay Kitchen. A recent PCIA study showed 42 percent of all Americans are willing to consider switching their local phone service to wireless.
BellSouth must convince the FCC it has met the so-called local competition checklist, which contains 14 measurements that an RBOC has opened its local wireline market to competition. The FCC has rejected four previous attempts, two by BellSouth, and one each by Ameritech Corp. and SBC Communications Inc.
The local competition checklist is found in Section 271 of the telecom act. Section 271, and other long distance-related sections of the act, came under scrutiny late last week by a federal appeals court in New Orleans.
The U.S. Court of Appeals for the Fifth Circuit heard oral arguments July 9 regarding a challenge by SBC, U S West Inc. and Bell Atlantic Corp. that the telecom act’s long-distance entry test was unconstitutional. The Baby Bells claim the test amounts to a bill of attainder and therefore violates the Constitution. Bills of attainder punish by name individuals (or, as the Bells argue, specific companies) for past behavior.
The appeals court case involves a ruling on New Years’ Eve by Judge Joseph Kendall in Wichita Falls, Texas, that a bill of attainder did indeed exist. The Fifth Circuit is expected to take several months before rendering a decision. Any decision is expected to be appealed to the Supreme Court.
