The ‘Baby Bells’ asked for room to compete.

The regional holding companies formed three years ago in the breakup of American Telephone & Telegraph urged U.S. District Judge Harold Greene to loosen regulatory constraints on what businesses they can enter besides providing local phone service. Zane E. Barnes, president of Southwestern Bell, said present restrictions are keeping “information age” benefits developed in this country--and enjoyed in France and Japan--from Americans. Long-distance carriers and other telecommunications firms opposed the proposal.