Ameritech Seeks Long-Distance OK

Ameritech, the local telephone company for parts of the Midwest, sought Justice Department approval Tuesday to enter the long-distance business.

MCI Communications Corp. and American Telephone & Telegraph Co., the nation’s two largest long-distance carriers, immediately expressed opposition.

Under the 1984 court agreement with the Justice Department that broke up AT&T;, the regional phone companies are not allowed to offer long-distance service.

Ameritech is seeking a waiver of that restriction for a 1995 trial run of its “Customer First” plan. Under the plan, Ameritech would open its local switches to competitors, presumably breaking the monopoly hold it now has on local calls in its five-state region.

The idea is to have competition in both long-distance and local phone business, Ameritech said. Customers could once again have the same carrier for both long-distance and local calls, but instead of one regional phone company there would be a choice of several.

Ameritech would like to start the trial in Illinois in the first quarter of 1995 and add other states over time. Ameritech provides local service to residents of Wisconsin, Michigan, Ohio, Indiana and Illinois.

“Marketplace changes and accelerating technology make a compelling case for quickly moving to a fully competitive communications marketplace--the objective of our Customer First plan,” said William Weiss, Ameritech chairman and chief executive.

AT&T; said in a statement that Ameritech should not be allowed into long-distance service until it has demonstrable competition in local service.

“What Ameritech is saying is, ‘Let us offer long-distance while we see whether competition develops in the local exchange,’ ” said Herb Linnen, an AT&T; spokesman.

AT&T;’s standard for demonstrable local competition is 75% of all customers having access to a company other than the regional operator for local service and 30% of customers actually doing business with a competitor.

Jim Lewis, MCI vice president of regulatory affairs, said Ameritech won’t be able to meet the court-required competition standard for entering the long-distance market.

It has asked the Federal Communications Commission to approve its open-market plan.

But Lewis said: “We filed comments to the FCC showing the problems with the Customer First plan. It doesn’t open up markets. Where it does, it makes sure Ameritech is the winner. When you get into the details of the plan, you conclude it is not a reasonable trade.”