Friday, October 30, 1998

Group calls for phone company competition

By DOUG WILLIAMSON

Business Editor

An ad hoc coalition of communications companies and a citizens' advocacy group is calling for Southwestern Bell and GTE to open the doors for more competition.

Speaking at a Friday press conference, Abilene attorney Joe Pelton said, "We have deep concerns that Texas' local phone monopolies intend to approach the 1999 Texas Legislature with an agenda of delay. Competition and lower phone charges for Texas families and businesses are being held hostage by the unwillingness of local phone monopolies to allow competitors to enter the market."

Pelton said he was representing the Partnership for a Competitive Texas, a lobbying group.

Louis Wilmot, who heads the organization, said in a telephone interview later Friday that the two major local phone service companies in Texas are making huge profits and could stand more competition.

Dennis Gloyna, local SWB manager, said his company is making 12 percent profit, while AT&T, a major contributor to the Partnership for a Competitive Texas, is making 80 percent profit on long distance service.

Wilmot questioned the 12-percent figure, saying the documents at the Texas Public Utility Commission reflect a 40-45 percent profit for SWB.

One of the bones of contention is a 12-cent-per-minute access fee SWB and GTE charge long distance carriers to utilize their in-state phone lines.

"That is why Texans cannot get the 10-cents-per-minute rate advertised by Sprint. Sprint has to pay 12 cents a minute from the get-go," Wilmot said.

Pelton said it only costs SWB 1 cent a minute to connect calls into its network.

Gloyna said other states have cheaper access charges but the minimum monthly local phone bill is more. In California, the surcharge is 2.26 cents, but the basic monthly phone bill is $16.76. In Illinois, those figures are 2.62 cents and $16.88.

Here in Abilene, the charge is 12 cents, but the minimum phone bill is $8.80, and in some rural areas of the state, it goes down to $8.15.

"You can keep the local rates where they are, or you can chose to lower the access rates and local charges will go up," Gloyna said.

Wilmot countered, saying that statement is "trying to scare the Legislature."

<I>Doug Williamson can be reached at 676-6707 or williamsond@abinews.com.<I>