Communications Upheaval : Justice Dept. Seeks to Lift ’82 Consent Decree Breaking Up AT

Spurred by the recent overhaul of the nation’s telecommunications law, the Justice Department late Wednesday asked U.S. District Court Judge Harold Greene to lift a historic 1982 consent decree that broke up the old AT&T; telephone monopoly.

The request sets the stage for a showdown with Greene, who has recently expressed concern over whether the sweeping telecommunications measure signed into law by President Clinton earlier this month is adequate to ensure competitive telephone markets.

The request also faces opposition from four of the seven regional Bell telephone companies who are seeking a return of phone company documents the Justice Department obtained during its lengthy telephone industry investigation.

The 14-year-old consent decree, which capped a long antitrust investigation into Ma Bell, carved up the huge phone monopoly into AT&T; Corp. and the seven regional Bell telephone companies. Among other things, the decree prevented AT&T; from buying a Baby Bell’s stock or assets. But the telecommunications reform law erases those prohibitions.

Under the new telecommunications reform law, the Federal Communications Commission will determine if and when a Baby Bell can provide long-distance service in regions where it now has a monopoly on local service. In addition, Congress authorized the Justice Department to assess telephone competition and required that the FCC give the department’s findings “substantial weight.”

Although Greene has acknowledged in court proceedings that the law makes the consent decree moot, some legal experts say a protracted court battle could erupt over what should be a simple housekeeping matter. Earlier this month after acknowledging that the new law required him to take action on the decree, Greene asked the parties to the agreement to reconvene in mid-March to submit resolutions to the matter.

David Turetsky, a deputy assistant attorney general at the Justice Department, said the department made its request to lift the decree in order to “address all of the outstanding questions . . . and bring this matter to a conclusion.” Turetsky said he hoped Greene treated the “protests [as] a separate problem” from the matter of lifting the consent decree.

Michael K. Kellogg, a Washington lawyer who represents Bell South, SBC Communications, Bell Atlantic and Nynex in their bid for a return of nearly 3 million pages of court documents held by the Justice Department, said his clients fear the sensitive business material may find its way into the hands of rivals.