ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Thursday, December 21, 1995 TAG: 9512210092
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: NEW BRITAIN, CONN.
SOURCE: Associated Press
Connecticut on Wednesday became the first place in the nation to allow statewide competition for local phone service.
On a voice vote, the Department of Public Utility Control unanimously approved a plan to allow companies such as MCI Communications Corp. and AT&T Corp. to compete against Southern New England Telecommunications Corp., which now has a monopoly on local phone service in the state.
Regulators in other states have allowed local phone competition in limited areas, such as in Rochester, N.Y., portions of Chicago and California. But the decision in Connecticut marks the first time an entire state is involved.
Analysts and telecommunications executives say customers, particularly businesses, are eager to have one provider of both local and long distance phone service. A major telecommunications reform bill in Congress would set a timetable for opening up competition nationwide.
The Connecticut agency also set rates that other phone companies must pay SNET to use the company's network, switches and other equipment to deliver phone service.
SNET had proposed charging other companies nearly $19 per month for each residential caller in a metropolitan area and $30 in rural areas. The DPUC decided on an interim rate of just over $12 for metropolitan area service and just under $17 for rural areas.
The agency said the interim rates are low enough to foster competition and give SNET an incentive to quickly submit a new proposal, from which it will establish the final rates.
SNET may file a petition to ask regulators to reconsider its decision, spokeswoman Barbara Levy said.
The DPUC already has certified five companies to provide local service: MCI, MFS Intellenet, Brooks Fiber Communications of CT, Teleport Communications Group, and Cable and Wireless Inc.
Applications are pending for Sprint and Cablevision Lightpath Inc. AT&T also plans to file an application.
Following the DPUC meeting, MCI said it would offer local service early next year, starting in businesses where phone companies typically make more profits.
``It's full steam ahead,'' said Bernie Tylor, an MCI spokesman. ``We expect to provide service in very early '96. For Connecticut consumers to have a choice of local phone service providers early next year, that is a victory.''
Derek Reisfield, analyst at the Mitchell Madison Group, a New York consulting firm, said Connecticut consumers will benefit from the decision.
``The direction that the country is headed in is competition, and that ultimately unleashes the competitive forces and leads to lower rates,'' Reisfield said. ``As people try to sign up customers and compete on rates and services, rates will decrease.''
LENGTH: Medium: 57 linesby CNB