ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, July 18, 1996 TAG: 9607180046
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
Bell Atlantic and MFS Communications Co. Inc. of Omaha, Neb., have agreed to interconnect their networks in five of the six states, plus the District of Columbia, where Bell Atlantic operates, Bell Atlantic announced Wednesday.
The agreements could help clear the way for Bell Atlantic to offer long-distance phone service in Virginia and other states where the company currently provides local service. They will also make it possible for MFS to compete with Bell Atlantic for its local phone business.
In May, the Virginia State Corporation Commission approved MFS' application to provide local phone service to businesses and governments in Virginia. The company is one of six the state has granted permission to compete with existing local phone companies since Virginia opened local markets to competition on Jan. 1.
Besides Washington, D.C., the Bell Atlantic-MFS agreement covers the states of Virginia, Maryland, Delaware, Pennsylvania and New Jersey. It doesn't cover West Virginia, where Bell Atlantic also operates, because MFS doesn't currently have any operations there.
Before Bell Atlantic can enter the multibillion-dollar long-distance business in its Mid-Atlantic service area, it must first prove it has real competition for its local phone business and meet other tests set out in the federal Telecommunications Act of 1996.
Bell Atlantic Vice Chairman James Cullen said Wednesday that his company's agreement with MFS meets a 14-point checklist in the federal law and brings Bell Atlantic "a step closer" to offering long-distance in its region.
The agreements allow MFS to use part of Bell Atlantic's network in combination with its own equipment so MFS can offer services where it doesn't have its own full network in place. They also make possible the use of advanced calling features, such as Caller ID, on calls between the two companies' systems.
Previously, Bell Atlantic signed an interconnection agreement with Jones Telecommunications, a Northern Virginia television cable company, that makes it possible for Jones to offer local phone service. Bell Atlantic said earlier this week it was negotiating other interconnection agreements with roughly 30 different companies.
Long-distance company AT&T is another of the six companies that have been granted state permission to offer competitive local phone service in Virginia. Negotiations between AT&T and Bell Atlantic for the interconnection of their two networks have been acrimonious, and just Monday each company asked the SCC to arbitrate their dispute under conditions set forth in federal law.
Neither AT&T nor Bell Atlantic has missed an opportunity to take potshots at each another as they fight to get into each other's business. Wednesday was no exception.
Bell Atlantic's Cullen pointed out that his company's talks with MFS were held in a cooperative spirit, in "stark contrast" to its discussions with AT&T.
But AT&T disagrees that Bell Atlantic's agreement with MFS will be enough to fulfill federal requirements, Lowell Connor, an AT&T spokesman, said.
"MFS, first of all, doesn't have the intent of serving the entire state," Connor said. "It's a sham."
AT&T's talks with Bell Atlantic were naturally going to be more difficult because they are more complicated and involve a full-service interconnection agreement, Connor said. "They are the most complete, most thorough and will give the most benefit to customers in Virginia," he said.
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