AT&T;, MCI Sue to Block Qwest Pacts

AT&T; Corp. and MCI Communications Corp. filed a second federal lawsuit to block long-distance competitor Qwest Communications International Inc. from a planned joint-marketing alliance with a local phone company, this one with Baby Bell Ameritech. Qwest announced the pact earlier in the day, saying it would pay Ameritech an undisclosed fee for each client in the Baby Bell’s local phone region that chooses Qwest for long-distance service. Chicago-based Ameritech, which serves five Midwest states, would offer a discounted package of features such as call waiting and caller ID bundled with Qwest’s service. A similar Qwest agreement with Denver-based US West Inc. prompted New York-based AT&T; and Washington, D.C.-based MCI to file suit in a Seattle federal court on Thursday. The two largest U.S. long-distance providers claim the agreements violate the 1996 Telecommunications Act’s restrictions on local phone companies providing long-distance service while their regional monopolies remain intact. Thursday’s lawsuit was filed in U.S. District Court in Chicago. Denver-based Qwest said it is negotiating similar agreements with the other Baby Bells as well as with electric utility companies. Qwest’s shares rose $1.19 to close at $39.56 on Nasdaq. Ameritech shares fell 25 cents to close at $43.25 on the New York Stock Exchange.