PacBell Bid Challenged by Rivals

Long-distance carriers, start-up local phone companies, Internet service providers and consumer groups told state regulators Thursday that Pacific Bell has not yet earned the right to enter the long-distance business.

Their main complaint is that PacBell, a subsidiary of San Antonio-based SBC Communications Inc., has not sufficiently opened its network to competitors and still behaves like a monopoly.

Several companies asked the California Public Utilities Commission to consider breaking up PacBell into two parts: one serving its retail customers and another providing network services to rival phone companies.

Under federal law, the “Baby Bell” local phone monopolies cannot sell long-distance service in their home regions until they prove that they have opened their markets to competitors.

The comments from rivals, including AT&T; Corp. and WorldCom Inc., are similar to arguments raised in other states where local phone companies have sought permission to sell long-distance service.

PacBell argues that it has fulfilled all requirements. In the past, the company has dismissed complaints from its rivals as an attempt to keep it out of the long-distance business for as long as possible.