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Bells On Brink Of Going Long Distance Many Approvals Expected Big telecom competition is set to truly arrive soon in a host of U.S. states.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| August 02, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: REINHARDT KRAUSE

Local Bell phone companies are -- finally -- close to reaching a big goal: selling long-distance services within their entire regions.

Of course, we've heard that before. As in baseball, it's become a wait-'till-next-year battle cry for the Bells.

It looks like next year is here. While local Bells won the right to apply for entry into long distance through the Telecommunications Act of 1996, only 13 states have given any of them the green light. But as many as 25 more states are expected to give the go-ahead by early 2003.

That'll reshape a consumer long-distance market long dominated by AT&T Corp., say company executives and analysts. (The Bells can't begin to make big inroads into the business market until they can provide long-distance regionwide.)

AT&T will defend its customer base against the regional Bell operating companies. It's getting ready for a delayed, but powerful, Bell onslaught.

"We're facing the big tsunami of RBOC entry," Betsy Bernard, president of AT&T's consumer unit, told analysts in a recent conference call.

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