The FCC, alongside US long-distance telephone operators, including AT&T Corp and MCI Communications Corp have challenged the a Texas judge’s ruling that dismissed key parts of the 1996 Telecommunications Act as unconstitutional. The latest twist to the implementation of the 1996 Telecommunications Act threatens to throw the US telecoms market into fresh turmoil. The ruling, made on December 31, opens the way for the RBOCs to enter the lucrative long distance market before proving to the FCC that its own market is open for fair competition. Since the passing of the act the FCC has been responsible for overseeing the liberalization of the US telecoms market with RBOCs able to enter the long-distance market while allowing competitors into their monopoly local loop markets. The new ruling threatens to cut through the FCC’s role in the move and comes at a time when the FCC has been coming under increasing criticism for the failure to open the local and long- distance markets. The new ruling was quickly followed by an appeal lodged by the FCC looking to nullify the decision. FCC Chairman William Kennard said he would seek to delay implementation of the decision. “We want to move immediately to try and remedy this situation,” said Kennard. “I believe this decision is flawed in many respects and I’m confident that we will prevail.” The FCC will ask the Justice Department to obtain a stay of the decision, while the ruling is appealed to a US appeals court in New Orleans. Long-distance carriers AT&T Corp and MCI Communications Corp filed in US District Court on Friday seeking a stay, arguing the appeals court would likely reverse Judge Kendall’s decision. “This is plainly a case where the status quo should be maintained until the Court of Appeals has had a chance to pass on the matter,” the motion said. Judge Kendall sided with San Antonio-based SBC Communications Inc and U S West Communications Corp. of Denver, which filed the lawsuit, in their bid to dismiss restrictions on the company entering the long-distance by declaring the act unconstitutional because Congress had singled out punishment for the five RBOC companies, as if each were guilty of anticompetitive practices although no investigation or hearing had been held to determine whether that was the case. The FCC is getting used to facing court decisions overturning its powers. Last year the US appeals court in St. Louis threw out FCC rules governing the price long-distance companies and others must pay the Bells to hook up to their local networks to offer their own service. The FCC has taken an appeal against that ruling to the US Supreme Court.
