3 Firms Seek Long-Distance Bulk Discount

SBC Communications Corp., Pacific Telesis Group and BellSouth Corp. said Thursday that they are jointly seeking to buy bulk long-distance telephone capacity to secure the best discount.

The companies put together a joint request for proposals to several long-distance companies and are seeking competitive bids. They declined to give further details.

A source close to the deal said the agreement was not a precursor to a joint long-distance subsidiary or a common long-distance strategy among the three, rather a way to secure the best possible price.

“There are no plans for a joint long-distance subsidiary,” the source said. He also said that nothing about the deal precluded the companies from offering long-distance in each others’ territories.

Individual regional Bells have already been quoted rates below 2 cents a minute for bulk wholesale capacity, compared with a retail price of upward of 10 cents, analysts have said. This deal could bring prices still lower.