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U.S. Opposes Ameritech’s Long-Distance Bid

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(Bloomberg News)

The U.S. Justice Department recommended that Ameritech Corp. be denied its application to provide long-distance telephone service to its customers in Michigan. The Justice Department’s antitrust division said Ameritech failed to fulfill a 14-point competitive checklist that, under the Telecommunications Act of 1996, regional Bell telephone companies must meet before they can provide long-distance service. Only two weeks ago, Michigan state regulators said Ameritech had fulfilled 11 of those requirements. The Federal Communications Commission now has until Aug. 19 to make the final determination on whether to allow Chicago-based Ameritech to be the first Baby Bell to enter the long-distance market. The recommendations aren’t binding but are taken into account by the FCC. Ameritech stock fell 62.5 cents to close at $69.75 on the New York Stock Exchange.

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