WASHINGTON-The Federal Communications Commission last week said personal communications services is a facilities-based competitor to wireline services. However, in an order rejecting BellSouth Corp.’s application to offer long-distance service in Louisiana, the FCC said PCS in Louisiana has not risen to the level of competition to allow BellSouth to offer long-distance service in that state.
In an attempt to offer long-distance service, BellSouth has pointed to the strength of the PCS market in Louisiana, contending competition is alive there. The Baby Bells are prohibited from offering long distance until they meet a local competition checklist, in addition to proving there is facilities-based competition in the market.
The Personal Communications Industry Association clearly was pleased with the FCC’s interpretation of PCS as a facilities-based competitor, taking the opportunity to tout its campaign for a wireless America. “PCIA, with its Agenda for a Wireless America campaign, is working with the FCC and Congress to ensure that wireless realizes that full potential as an alternative to the wireline local loop. Yesterday’s decision by the FCC that wireless can provide competition to the wireline local loop is a step in the right direction,” said PCIA President Jay Kitchen.
The FCC additionally noted Congress specifically carved out an exception, saying cellular service is not a facilities-based competitor to wireline service and if Congress had wanted to include PCS service, it would have included it as part of the cellular exception.
The application is BellSouth’s second try to offer long distance in Louisiana. The FCC turned down its original attempt in February. The Bell operating company made a similar argument in its first filing. The FCC said both times that PCS in Louisiana was not a substitute to wireline.
BellSouth had strong backing for its application from powerful congressional lawmakers. Sen. John McCain (R-Ariz.), chairman of the Senate Commerce Committee, and Rep. Billy Tauzin (R-La.), chairman of the House telecommunications subcommittee, sent letters to the FCC saying evidence of PCS competition was compelling enough to warrant approval of the application.
McCain and Tauzin were disappointed by the FCC’s decision. “This decision represents more of the same. We will be addressing Section 271 (which contains the checklist RBOCs must meet before offering long distance) next year at hearings on the telecom act. McCain has said before that he believes that Section 271 is the most problematic regulatory obstacles erected by the FCC,” said Pia Pialorsi, press secretary for the Senate Commerce Committee.
Tauzin attempted to pre-empt the FCC’s action by introducing legislation in the waning days of the 105th Congress. The legislation, presumably to be re-introduced early next year, would “essentially [begin] the process of reviewing the inadequacies of FCC implementation of the local competition provisions of the [telecom act],” Tauzin said.
The legislation is necessary to send the “message to the FCC, the Department of Justice, and the [Clinton] Administration that the `status quo’ is no longer acceptable. Only true, open competition in all markets will be acceptable now, not later,” Tauzin said. Tauzin was joined by Rep. John D. Dingell (D-Mich.), the senior most member of the House and the ranking Democrat on the Commerce Committee, in sponsoring the InterLATA Communications Improvements Act of 1998.
FCC Commissioner Harold Furchtgott-Roth, while agreeing the Louisiana local exchange market was not competitive, said the FCC relied too heavily on the checklist to determine competition.
