SBC Taps Williams For Transport, Usual Suspects Scoff

Communications Today, July 7, 2000

Southwestern Bell [SBC] is gearing up for long distance in Texas, and has chosen Williams Communications [WCG] to provide its out-of-region long-distance transport. The usual suspects (LDCs and CLECs) spent the week grumbling about the FCC's approval of the ILEC's Section 271 application, while fellow incumbents crowed.

The CLEC trade group Association for Local Telecom Services yesterday (grudgingly) said that the approval showed that the 271 process work but that we should all basically keep an eagle eye on SBC to prevent it from taking over the planet.

"The eyes of Texas -- and federal -- regulators must be acutely focused upon the incumbent to guard against any infractions of market-opening rules," said ALTS President John Windhausen Jr. "SBC's ability to meet many requirements has not been fully tested, so enforcement must be strict and vigilant."

AT&T [T], the incumbents' toughest opponent, was likewise unimpressed.

"The FCC should have demanded more from SBC," AT&T spokesman Jim McGann said. "We raised a number of serious concerns that impair a new local carrier's ability to compete against SBC, and that remain unresolved."

BellSouth [BLS] execs at last gave a firm deadline for their application in Georgia.

"The FCC and Chairman Bill Kennard deserve praise for bringing a meaningful choice for long-distance service to Texas consumers," said Vice Chairman Jere Drummond. "In August, BellSouth plans to seek approval to offer consumers a true choice for long-distance service in Georgia."

SBC and Williams have been working on the transport deal since February 1999. Williams execs said they hope to replicate it in the ILEC's other states.

"We look forward to supporting SBC as it gains regulatory approval to offer services in additional markets," said Howard Janzen, Williams' president and CEO.

Paul Coe Clark III