FCC Bars Qwest-Bell Long-Distance Deals

The Federal Communications Commission barred regional Bell companies US West Inc. and Ameritech Corp. from marketing long-distance service on behalf of upstart carrier Qwest Communications International Inc., saying the Bells’ arrangements to collect fees for referring their local customers to Qwest violate the 1996 Telecommunications Act. Under the act, Baby Bells may not offer long-distance services directly until they open their local networks to competitors. Denver-based US West and Chicago-based Ameritech, which is being acquired by Baby Bell SBC Communications Inc. of San Antonio, maintained that they were permitted under the 1996 act to market long-distance service provided by an unaffiliated company such as Denver-based Qwest. The ruling represents a victory for leading long-distance carriers such as AT&T; Corp. and MCI WorldCom Inc., which had filed lawsuits to block the marketing deals, announced in May.