Sprint Corp., the long-distance giant under siege, may be on the verge of plotting its own counterattack against the Baby Bells by targeting local phone customers in the residential market.
Sprint has signed an agreement with Z-Tel Technologies Inc., a Florida-based company that has used reseller arrangements to serve the residential market through direct sales and a monster partnership with one of Sprint’s main rivals, MCI.
Sprint spokesman James Fischer said the company signed the agreement with Z-Tel to perform some market tests.
It would be premature for Sprint to say much more than that since the extent of its relationship with Z-Tel is likely to largely hinge on an upcoming Federal Communications Commission ruling.
The FCC could issue a ruling as early as a week from tomorrow on regulations that allow companies to resell local phone service over the Bell networks.
Fischer said Sprint views the resale platform, which is simply referred to in telecom circles as the UNE-P, as a transitional strategy. Sprint has suggested that the platform remain in place for three years.
“We would see this a transitional thing allowing us to build up our business so we would transition and [use] other technology later on,” Fisher said.
Sprint has incumbent operations in parts of 18 states, but the company has not provided local residential phone service outside of those territories.
AT&T Corp., MCI and Sprint, the nation’s biggest long-distance carriers, are fighting to preserve their market share as the Bells, the dominant local phone companies, gain federal authorization to provide long distance services within their territories.
Verizon Communications Inc., the No. 1 local phone company, recently noted it has surpassed Sprint as the third largest long-distance provider, citing a market research survey.
