Long-Distance Firms May Triumph in Texas

Fortnightly Magazine - September 15 1996
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

The Texas Public Utilities Commission (PUC) has issued a preliminary order allowing Sprint Communications to enter the local-exchange market without committing to a lengthy plan to build a telecommunications network. The decision marks a victory for the three largest long-distance providers, precluded by 1995 state legislation from reselling the services of existing local exchange carriers.

The decision reflects the PUC's finding that 1) the build-out requirement would be preempted by the Telecommunications Act of 1996, or 2) Southwestern Bell would meet Federal Communications Commission criteria to become a long-distance carrier in Texas, rendering the build-out plan unnecessary for competitors. Further, the PUC concluded that the six-year build-out plan, called "PURA," could deter companies from entering the Texas network, especially since they could simply wait until the build-out period ends. (em LB t

Joseph F. Schuler is an associate editor, and Lori A. Burkhart an associate legal editor, of PUBLIC UTILITIES FORTNIGHTLY.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.