SBC Communications Inc., the second largest local phone company, on Wednesday received federal approval to provide long-distance services in Michigan, where the state utility regulator had cited concerns over the company's wholesale billing systems.
San Antonio-based SBC will have authority to provide long-distance services within its entire 13-state local phone region by the end of October if all goes according to plan.
The FCC has until Oct. 15 to vote on whether to grant SBC authority to provide long-distance services in Illinois, Indiana, Ohio and Wisconsin. The Bell company already provides local and long-distance phone and data services in Arkansas, California, Connecticut, Kansas, Missouri, Oklahoma, Texas and Nevada.
Federal law requires the four Bell companies to open their local phone networks to competition before they are allowed to provide long-distance services within their incumbent phone territories.
AT&T Corp., a big SBC rival, said it was disappointed with the FCC's decision.
"Marketplace experience and the record before the FCC confirmed that SBC continues to impede competition in local markets in Michigan," said AT&T spokesman Mike Pruyn.
But the top U.S. telecom regulator said the decision would benefit consumers.
"Approval of SBC's application promises benefits to consumers in Michigan by making increased competition possible in all markets for telecommunications services," Reuters News Agency quoted the FCC in a statement.
