US West Inc. (www.uswest.com) is speeding up its in-region long distance entry plans largely because of its proposed merger with Qwest Communications International Inc. (www.qwest.com). The FCC (www.fcc.gov) will likely rule on the merger this spring, sources say.
In order to close the merger deal, Qwest must spin off its long distance operations in all 14 states where US West does business until the telco obtains Section 271 approval from the FCC. But by securing in-region long distance approval now or in the near future, US West's actions will be able to keep Qwest from having to exit the long distance market and start from scratch, says Mitchell F. Brecher, a partner with the Washington office of law firm Greenberg Traurig (www.gtlaw.com).
"It's my perception that the companies need to be able to consummate their deal without Qwest having to spin off its long distance services in US West's states," Brecher says. "If I were Qwest, why would I want to give up my entire long distance market share in a 14-state region and then have to go back and start all over again?"
In its attempt to quickly obtain in-region interLATA approval, US West now has Section 271 filings before all of the state commissions in its 14-state service territory. These filings, combined with a first-ever, regionwide independent third-party testing of US West's OSS, are designed to dramatically speed up the RBOC's long distance entry, company executives say.
"We're the first RBOC to use a regionwide approach to obtaining long distance approval," says David Fish, executive director of strategic communications in US West's Washington office. "This will benefit consumers and increase competition, the very aims of the Telecommunications Act."
US West first long distance applications were filed in Arizona, Nebraska and Colorado. The company's filings over the past two weeks -- in Idaho, Iowa, Minnesota, Montana, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming -- are intended to establish a process by which state commissions can consider US West's compliance with the Telecom Act's 14-point competitive checklist. Once the third-party OSS tests are approved, Fish says, each state then is in a position to quickly support US West's long-distance applications with the FCC. Regionwide OSS testing for US West is slated to begin in early the second quarter and be completed early in the fourth quarter.
In other RBOC-related long-distance news, in April BellSouth Telecommunications Inc. (www.bellsouth.com) plans to file for FCC approval to provide long distance services in Georgia. And SBC Communications Inc. (www.sbc.com) expects California regulators to wrap up review of its compliance with the 14-point checklist by late spring.
