MCI enters Oklahoma's local phone service market

Journal Record, The (Oklahoma City), Apr 17, 2002 by Ray Carter

All three Oklahoma corporation commissioners said Tuesday that the entrance of MCI into Oklahoma's local phone service market is a sign competition is increasing due to regulatory changes approved by the agency. "This is just the type of announcement we envisioned when the commission adopted the alternative regulation rules opening Southwestern Bell's local phone service to competition," said Commission Chairman Denise Bode.

"MCI's decision means more customer choice, and competition that can result in 'more bang for the buck' for Oklahomans." On Monday, MCI announced the launch of local and long-distance service to citizens in select areas in 32 states, including Oklahoma. MCI's flagship offering, "Neighborhood Complete," provides unlimited calling within the United States, plus a complete suite of calling and messaging features, on one bill for a flat monthly fee. MCI officials described that service as "the communications industry's first large-scale, credible threat to the local phone monopolies' lock on the consumer calling market." In the arena of local phone service, Southwestern Bell commands between 90 and 95 percent of the Oklahoma market, according to the Oklahoma Corporation Commission. The second-largest provider of local phone service in the state is Valor Telecommunications, which acquired GTE's network. The remainder of the local phone market is divided between several smaller independents, such as Pioneer. In the Oklahoma City area, only Southwestern Bell and Cox Communications provide local phone service. Commission Vice-Chairman Bob Anthony said MCI's "The Neighborhood" program reflects the changes that have occurred both in the local and long-distance markets. "Under alternative regulation, not only is the local phone market opened to competition, competition increases in the long-distance market as well, as local phone companies are allowed to sell long-distance. This increased competition has prompted such innovative programs as MCI's new offering, which combines both the long-distance and local elements of phone service." Following MCI's announcement, Southwestern Bell began publicizing a competing plan similar to MCI's offering. Commissioner Ed Apple noted all the new programs being offered by the telecommunications companies doing business in Oklahoma means consumers must do their homework. "With greater choice comes greater responsibility for the consumer," Apple said. "The commission is moving aggressively to provide Oklahomans the information they need in order to know what their rights are when it comes to telephone service, and to be able to comparison shop and make the right decision for themselves."