ALTS Urges FCC to Reject Southwestern Bell's Application to Offer Long Distance in Texas.

WASHINGTON--(BUSINESS WIRE)--May 19, 2000

Southwestern Bell's Performance Falls Short

of Requirements of the Telecom Act and FCC Rules

The Association for Local Telecommunications Services (ALTS) today said the Federal Communications Commission (FCC) should reject Southwestern Bell Telephone's (SWBT's) supplemented application to enter the long distance market in Texas. ALTS said SWBT has not met the 14-point competition checklist of Section 271 of the Telecom Act.

In reply comments to the FCC, ALTS, the leading national trade association representing facilities-based competitive local exchange carriers (CLECs) said that SWBT's performance falls short of the minimum performance standards recently set by the FCC in its order on Bell Atlantic's application to enter the long distance market in New York.

"SWBT seems to be engaging the FCC in a childish game - re-packaging its application without improving its service," said John D. Windhausen, Jr., President of ALTS. "The only safeguard for competitors and consumers lies in ensuring that SWBT meets all requirements."

Section 271 approval requires that the Bell Operating Company (BOC) provide service to competitors at parity with its retail offerings. Failure to comply with even a single checklist item constitutes grounds for denying a Section 271 application. In clear violation of the Act, SWBT still restricts access to its loops and undertakes other discriminatory practices including restrictions on CLEC efforts to deploy xDSL.

"SWBT's application is premature and hangs on a mere promise of future action, not the necessary evidence demonstrating its present compliance," said Jonathan Askin, General Counsel of ALTS. "SWBT must stop wasting valuable FCC time and resources on premature, deficient 271 applications. The FCC has more important things to do with its time, such as promulgating and enforcing rules to guarantee that the local markets are open to competitors."

According to ALTS, SWBT's performance has not improved since its initial application. The Association said SWBT failed to remedy any of the important defects evidenced in its January 10, 2000 Application, and in several critical areas SWBT's performance, in fact, has worsened.

ALTS also argued that the TPUC is incapable ensuring that SWBT meets its obligations should the application be approved. Unlike the New York Commission, the TPUC now has very little authority over most of the business services SWBT provides.

ALTS is the leading national industry association whose mission is to promote facilities-based local telecommunications competition. Created in 1987, ALTS has offices in Washington, D.C. and Irvine, California and now represents more than 200 companies that build, own, and operate competitive local networks. For more information on ALTS, contact Crawford Public Relations at 703-318-5460 or visit the ALTS Web site at www.alts.org.