Probe of Baby Bells’ Lobbying Drive Urged

A group of 13 New York telephone companies, service providers and associations asked that state’s attorney general to investigate “a secret plan by the Bell monopolies” to prod vendors into supporting a $40-million lobbying campaign designed to end price regulations.

In the letter to Atty. Gen. Eliot Spitzer, the group, headed by the Competitive Telecom Assn., contends that pressure put on Bell suppliers could amount to an implied boycott against any vendors that don’t join the lobbying campaign.

Such a boycott would be an illegal restraint of trade and violate state laws, the group said.

Spitzer’s office declined to comment.

Two weeks ago, a group of Bell rivals and trade groups in California asked state Atty. Gen. Bill Lockyer to look into possible violations of California antitrust laws. Lockyer’s office is reviewing the request, a spokesman said.

Last month, two dozen rivals and trade groups asked Senate and House judiciary committees to look into the matter. Those requests are pending.

The issue arose after The Times published details from a memo about an Oct. 20 dinner meeting between Bell chief executives and their counterparts at Intel Corp., Siemens USA and other vendors.

The U.S. Telecom Assn., which hosted the dinner, has denied that any antitrust laws were broken. A spokesman has said the activity was protected from antitrust laws by a federal doctrine that allows such meetings to address public policy concerns.

The USTA has called the allegations “baseless and slanderous.”

-- James S. Granelli