Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 22, 1994                   TAG: 9403220058
SECTION: BUSINESS                    PAGE: B6   EDITION: METRO 
SOURCE: Greg Edwards Staff Writer
DATELINE:                                 LENGTH: Medium

MCI WANTS YOUR 'SHORT-HAUL' PHONE CALLS

MCI Communications Corp., the long-distance telephone company, filed a motion with the Virginia State Corporation Commission on Monday asking permission to compete with local phone companies in the "short-haul" long-distance market.

An SCC order sought by Washington-based MCI would allow long-distance companies such as MCI, Sprint and AT&T to provide toll service in competition with local phone companies such as Bell Atlantic.

The motion is part of an effort long-distance carriers have been pursuing since the break-up of the Bell System in 1984.

Deregulation of the telephone industry by the federal courts left up to the states whether to allow long-distance companies into the short-haul markets. Since then, 43 states have decided to do so. North Carolina last month became the last Southeastern state except for Virginia to allow such competition.

The short-haul long-distance markets that MCI and other long-distance companies are interested in are for calls such as those between Roanoke and Staunton or Bedford and Pulaski.

The long-standing position of the SCC is that when Bell Atlantic and other local phone service providers are allowed to compete in the broader long-distance markets, the commission will consider allowing competition for local long-distance calling, said Ken Schrad, an SCC spokesman.

The total domestic long-distance market is worth $60 billion annually, with short-haul calls accounting for $12 billion of that, MCI said.

"This isn't anything new; it comes as no surprise to us," said Paul Miller, a spokesman for Bell Atlantic-Virginia. "The SCC is currently looking at this issue, and we're confident they'll arrive at a prudent decision that will be in the public's interest."

The Virginia General Assembly gave the SCC permission to allow competition in the short-haul markets effective July 1, 1986. MCI has had a petition pending before the commission since that time.

Congress is considering legislation that would allow local phone companies to provide long-distance service outside their small regional calling areas.