Long-distance telephone companies stymied in efforts to crack the local residential phone market apparently have agreed on a tactic that would split up local phone firms such as Chicago-based Ameritech Corp.
A plan to break apart incumbent local carriers into wholesale firms operating the phone network and retail firms marketing services to the public was first proposed in January to the Federal Communications Commission by LCI International Inc., the nation’s sixth-largest long-distance carrier. It was later endorsed by MCI Communications Corp., the No. 2 long-distance carrier.
On Tuesday, C. Michael Armstrong, chairman of the largest long-distance carrier, AT&T Corp., also endorsed it.
“Separating the Bell companies’ local networks from their other operations will ensure that the Bell companies can’t subsidize their competitive activities from the inflated fees they charge long-distance companies who have calls completed,” Armstrong said.
Ameritech and other Bell companies have expressed opposition to the plan.
