Phone Firm Seeks Protection From Rivals

While companies battle for long-distance customers, federal legislation may stifle competition for local telephone service in much of the Inland Northwest.

If so, customers may not see the lower rates and other benefits the landmark telecommunications bill is supposed to nurture through deregulation.

A provision in the law, signed by President Clinton in February, protects certain rural telephone companies from competition.

GTE Corp. has told the Idaho Public Utility Commission it plans to seek protection for its North Idaho territory, said Duane Johnson, a GTE assistant vice president.

About 10 percent of its 735,000 lines in Western Washington also should be protected, he said.

Customers of US West Communications are not affected. But subscribers of PTI Communications, which serves 34,000 lines in Eastern Washington, could be.

Johnson said the provision is designed to shelter the nation’s hundreds of small telephone companies from predatory competitive practices by industry giants, such as AT&T Corp.

But as defined by the bill, GTE operations in 17 of 28 states, and portions of six others, qualify for some degree of protection, he said.

GTE, with 1995 revenues of almost $20 billion, is the nation’s largest local telephone service provider. The company has 117,000 customers in North Idaho.

Joe Cusick, acting supervisor of the Idaho commission’s telecommunications division, said GTE advised the agency in June it would seek the highest of two shields for its North Idaho operations.

Depending on which exemption applies to GTE, the company could limit discounts to competitors using its telephone lines, and deny the use of some of its equipment.

Johnson said the provision does not enable GTE to exclude competitors, just demand better terms for access to its markets.

Cusick said GTE’s notice was premature.

Commission members won’t consider granting protection until another company submits a bona fide request to offer competitive local service, he said.

The commission could decide competition would not inflict undue financial harm on GTE. That would open the market to other service providers in North Idaho, he said.

GTE also notified the Washington Utilities and Transportation Commission in June of its intent to claim an exemption on Western Washington lines.

In a written response, acting secretary Steve King told GTE the commission would, like Idaho, consider its letter advisory only.

But he wrote, “the claim of exemption is of more than questionable merit on its face.”

PTI is small enough to meet the guidelines for the exemption. So far, however, the company has not told the Washington commission if it will seek protection, spokeswoman Marilyn Meehan said.

, DataTimes