Government nixes SBC bid on toll service

COLUMBUS (AP) -- The Justice Department told federal regulators Tuesday it could not support SBC Communications Inc.'s application to enter the long-distance market in four Midwestern states.
SBC, the second-largest of the nation's four regional Bell companies, asked federal regulators last month for permission to offer long-distance service in Ohio, Indiana, Illinois and Wisconsin. The move is opposed by potential competitors who say the local telephone giant is blocking competition for its services.
SBC has been trying for years to offer long-distance service in its service area, and approval from the Federal Communications Commission is the final hurdle. SBC already sells long distance in eight states, including California and Texas.
In its Tuesday announcement, the Justice Department found flaws with SBC's billing accuracy. The department concluded that SBC has not shown that remaining billing problems are insignificant or that they have been adequately addressed.
In a statement, SBC said it was confident the company and FCC would be able to resolve the Justice Department's concerns.
"While the DOJ's evaluation cites a couple of issues for further review, it specifically states that the FCC may be able to satisfy itself regarding these issues and approve the application," said James Smith, a SBC senior vice president.
The Ohio Consumers' Counsel, which represents residential customers in rate cases, opposes SBC's move into long distance.