Pacific Bell Corp (PacBell) Wednesday filed an official complaint against American Telephone &Telegraph Corp and MCI Communications Corp with the California Public Utilities Commission (CPUC), charging that both companies are in violation of the 1996 Federal Telecommunications Act by jointly marketing resold local and long-distance services. Under the Act, argues PacBell, long distance companies are not permitted to repackage local telephone service with their own services – offering consumers one convenient bill – unless the local provider is allowed to offer long distance service as well. PacBell is currently working to convince the Federal Communications Commission that it should be allowed to enter the long distance marketplace but is not yet certified to do so. PacBell says it is not seeking punitive damages but simply asking for a level playing field, and hopes the CPUC will take action to make the two larger companies stop their joint marketing activities immediately.

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