Court Denies Bell Firms’ Long-Distance Entry

Three regional Bell telephone companies lost an appeal to begin providing long-distance service to local phone customers. In an important victory for federal regulators, the U.S. 5th Circuit Court of Appeals reversed a lower-court ruling that opened a path into the long-distance business for SBC Communications, US West and Bell Atlantic. District Judge Joe Kendall’s ruling in Wichita Falls, Texas, had declared key provisions of a 1996 telecommunications law unconstitutional. The provisions require the Bell companies to open their local phone markets to long-distance companies and other potential rivals as a prerequisite for selling long-distance service to local customers. The Bell companies are likely to challenge the appeals court’s ruling before the Supreme Court.