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

DATE: WEDNESDAY, January 26, 1994                   TAG: 9401260168
SECTION: VIRGINIA                    PAGE: C4   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: BALTIMORE                                LENGTH: Medium

SMALL COMMUNICATION FIRM SUES BELL ATLANTIC BRANCH

A small Virginia telecommunications company is challenging an offer by Bell Atlantic-Maryland, formerly Chesapeake & Potomac Telephone Co., to provide a video communication system in Maryland schools.

FreBon International Corp. filed the $680 million suit Tuesday in Superior Court of Washington, D.C., claiming the Bell Atlantic subsidiary negotiated the offer secretly with the state to avoid a potential bidding war.

FreBon, based in McLean, claims it had an agreement with Bell Atlantic-Maryland to teach the company about new video technology, including a fiber-optic system to link up to 270 schools via telephone lines.

The telephone company, FreBon said, used that information and made an offer to the state for a school linkup system without including FreBon in the deal, reportedly worth millions of dollars annually.

"We claim there is a contract - part of which is written, part of which is implied," said Stephen Snyder, FreBon's attorney.

Snyder said Tuesday that Bell Atlantic-Maryland also gained access to confidential information, marketing strategies and client lists through a former FreBon employee, which it used to make the offer.

Maryland was criticized by companies similar to FreBon after it announced in June that Bell Atlantic-Maryland offered a plan for high-tech "distance learning" for the state's schools. FreBon and others said they were shut out of bidding for the contract the state was seeking.

Bell Atlantic-Maryland officials would not comment on the lawsuit because they have not seen it. But spokesman Dave Pacholczyk said the company only responded to a "public offer" made by the state last year.

"We raised our hand, stepped forward and made an offer. No one was shut out," Pacholczyk said.

The state said in September that other companies could offer proposals.

The Maryland school technology proposal is just one aspect of the $680 million lawsuit.

FreBon also contends that Bell Atlantic Corp., Bell Atlantic Public Sector Systems, Bell Atlantic-Maryland and Bell Atlantic-Washington, D.C., prevented the company from securing other contracts by:

Attempting to monopolize the video conference equipment market by offering equipment below cost.

Passing off FreBon-developed marketing strategies, research and client lists as their own.

Using confidential information leaked by a FreBon employee to successfully underbid FreBon.

by CNB