At&T; Seeks Help In Phone Talks Company Asks Regulators To Intervene In Effort To Enter Local Markets
AT&T plans to ask regulators in eight states to arbitrate its stalled talks with US West over entry into the local telephone market.
The arbitration requests will be filed in Washington, Colorado, Arizona, Oregon, Minnesota, Iowa, Utah and Nebraska over the next few days, AT&T Vice President Mary Beth Vitale said Thursday.
State regulators will have until Dec. 1 to issue a ruling, and then either side may appeal to the courts.
Vitale said sticking points include the rates US West Communications Group will charge AT&T for services, equipment use and connecting calls; and methods for billing and processing new customers.
They failed to resolve their differences in mediation, Vitale said. “In four months of negotiations, we have not reached consensus with US West on any key issues.”
AT&T and other telecommunications companies began negotiating with AT&T’s former Bell System companies as a result of a new federal law designed to open local phone service to competition.
AT&T wants to do business in US West’s 14-state region by the end of 1997, starting out by reselling US West’s services. Negotiations began March 1 over the eight states where AT&T is seeking arbitration. Talks began June 20 between AT&T and US West over the remaining six states - Wyoming, New Mexico, North Dakota, South Dakota, Montana and Idaho.
Jim Smith, a US West vice president, denied accusations that his company was being unreasonable. He said his company’s negotiators are attempting to resolve the differences in good faith, as required by law.
“The concern we have is that their requests lack a great deal of specificity,” he said. “It’s made it difficult … to reach substantial agreement.”
Smith believes AT&T is more interested in protecting its long-distance market, which the “Baby Bell” companies will be able to enter under the new federal telecommunications law.
“They want very deep discounts, very low prices both on a resale basis and unbundled network elements,” he said. “Their motive to keep us from their lucrative long-distance market.”
The Federal Communications Commission is expected to provide more specific rules next month on opening up local markets. They will include guidelines on how competitors will access the Bell companies’ networks, and procedures for reselling Bell services.
Under the law, competitors may seek binding arbitration from state regulators if they fail to reach agreement within 135 days.
Rick Bailey, an AT&T vice president, said his company also has filed petitions for arbitration in talks with Bell Atlantic and Bell South.
“We have probably got the most issues that are being left to arbitration because we have made the least progress with US West,” he said.
Smith said AT&T began the talks with a 700-item list, including the telephone number its customers will use to reach US West’s repair office. Other issues included methods for billing and processing new customers, and AT&T’s request to offer directory assistance and operator services.