FCC Takes Up Protests on AT&T;’s Share of Long-Distance Market
The Federal Communications Commission, tackling the growing controversy on how consumers choose a long-distance telephone company, Thursday requested public comments on whether the American Telephone & Telegraph Co. should give up a larger share of the long-distance market.
At issue are up to 17 complaints from AT&T;’s competitors that AT&T; has an unfair advantage in keeping hundreds of thousands of customers who do not ask for service by a specific long-distance company. The antitrust settlement that resulted in the breakup of AT&T; last year mandated that local Bell telephone companies offer long-distance service by competing companies on an equal basis.
The so-called “equal access” policy, which began to be implemented last July, allows customers to place long-distance calls through AT&T; or its competitors--including MCI, Sprint and Allnet--by simply dialing “1.” Thus, customers no longer must dial up to 12 additional digits for access to an AT&T; competitor’s service or use a push-button phone that generates a special tone.
About 5% of the nation’s 100 million telephone lines already have equal access, and about a third of the lines will be converted by the end of this year, FCC officials said. Generally, local Bell companies have informed customers by mail about their options under the new policy, leaving any decision to the individual but assigning those who do not choose a specific company to AT&T.;
System Called Unfair
AT&T;’s competitors, seeking to gain a greater foothold in the lucrative $40-billion long-distance market, complained to the FCC that generally leaving customers by default to AT&T; is unfair.
The FCC, responding to their petitions, sought public comments Thursday on using a balloting approach with phone users as well as on whether to establish a system to force local phone companies to divide up those who make no choice. The FCC will accept comments for 27 days and hopes to make a final decision by June.
“I’m disturbed when people are not making a choice,” FCC Chairman Mark S. Fowler said.
But Commissioner Dennis Patrick said he was wary of imposing rules that would involuntarily assign a consumer to a long-distance carrier. “I hate to see the commission involved in carving up market shares,” he said.
In California, Pacific Bell notifies customers before and after its offices are converted to provide equal access. Customers have six months to make a decision free of charge but later must pay for any switch.
Will Explain Options
Beginning next month, the company will send out as many as five mailings explaining long-distance options. Included will be a card on which customers may indicate preferences. But Pacific Bell plans to continue to leave those who make no choice with AT&T.;
Pacific Bell already has converted 11 central offices in the state, including a small part of Los Angeles. In some areas, consumers can pick from as many as 13 long-distance companies.
During the first six months of this year, Pacific Bell will convert 62 additional offices for a total of 1.8 million phone lines. By Sept. 1, 1986, the court-mandated deadline, the company predicts that 74% of its lines--more than 7 million--will have equal access.
The equal access policy does not cover non-Bell telephone companies such as GTE and Continental, although the FCC is reviewing whether to extend it.
