Regulators Block SBC Long-Distance Bid

The Justice Department recommended that the government examine the prices SBC Communications Inc. charges to lease equipment to rivals before the company is allowed to offer long-distance to local customers in Missouri. The Federal Communications Commission is considering whether to let SBC provide the service. By law, SBC, a Bell company once part of the monopoly AT&T; system, cannot provide long-distance within its local calling region without the commission’s permission.

In a filing with the FCC, the Justice Department raised concerns that SBC was charging higher prices to rent out portions of its network to competitors in Missouri than it does in other states. The department urged the FCC to independently review the prices SBC charges rivals. State regulators arbitrate the prices in consultation with companies. The department also recommended that the FCC examine whether SBC is making available phone lines used to deliver Internet service to competing businesses.

“SBC is confident that it will be able to demonstrate to the FCC that the evidence supports approval of our Missouri long-distance application,” said SBC representative Priscilla Hill-Ardoin. The company has gained approval to offer long-distance service in Texas, Oklahoma and Kansas. SBC shares fell 21 cents to close at $42.25 on the NYSE.