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Telco Business Services Ruled Noncompetitive

Fortnightly Magazine - October 15 1996

An Illinois appeals court has upheld a ruling by the Illinois Commerce Commission (ICC) that certain services offered to business customers by Illinois Bell Telephone Co. are noncompetitive.

The local exchange carrier (LEC) had reclassified the services (distance-sensitive calls, credit card calls, and operator assistance) as competitive to take advantage of pricing flexibility permitted under the ICC's regulatory reforms for the industry.

The court agreed with the ICC that the need to dial special-access codes or install specialized equipment to access competing services provided by interexchange carriers precluded the "effective competition" needed to support the change in classification. Illinois Bell Tel. Co. v. Illinois CC, No. 95-135; 95-179, July 22, 196 (Ill.App.).

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