The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, October 6, 1995                TAG: 9510060486
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY DAVE MAYFIELD, STAFF WRITER 
                                             LENGTH: Short :   50 lines

REGIONAL PHONE MARKET OPENS; RATES TO DROP

People making long-distance calls within southeastern Virginia got a price break this week.

Effective Sunday, the State Corporation Commission demolished the monopoly - previously enjoyed by local phone companies like Bell Atlantic and GTE - on intra-region long-distance calls.

That means that many carriers now are vying to handle toll calls that begin and end within the same calling region.

A spot check Thursday in the Norfolk region - which includes Hampton Roads, the Eastern Shore and western Tidewater counties like Surry and Southampton - showed that new competitors in the short-haul toll market were already substantially undercutting Bell Atlantic.

A five-minute call during daytime hours from Norfolk to Williamsburg, for instance, would cost $1.52 on Bell Atlantic, $1.30 on AT&T and $1.25 on MCI, based on prices quoted by company operators. The AT&T and MCI rates would be further cut if callers were enrolled in the companies' discount plans.

Paul Miller, a Bell Atlantic-Virginia spokesman, said his company would like to lower its rates but can't until the state commission approves. Even though competitors are now allowed in intra-region calling, the commission is holding off on letting Bell Atlantic and other local phone companies lower their rates until it's clear that their new rivals are firmly established.

The commission plans a hearing Jan. 17 on Bell Atlantic's request to untie its hands. Miller said his company is disappointed it will take that long.

The one advantage that his and other local phone companies still have when it comes to intra-region calling is that it takes less effort to make calls using their services.

A call from Virginia Beach to Williamsburg on Bell Atlantic or GTE would require the caller to dial 1-804 and then the 7-digit number. The same call using AT&T or another long-distance carrier would require the caller to dial 1-804, then the carrier's 5-digit access code (in AT&T's case, 10288), and then finally the 7-digit number.

Miller said his company believes the extra five digits for using competitors' intra-region services will discourage Bell Atlantic customers from switching. ILLUSTRATION: Color map

by CNB