Friday, April 17, 1998

SWB says long distance service would add 61,000 jobs

By JUAN B. ELIZONDO Jr. / Associated Press Writer

AUSTIN (AP) -- Southwestern Bell says the state would gain more than 61,000 jobs in less than 10 years if Bell were allowed to offer full long distance services.

A consumer advocate says Texans should be skeptical.

"Everytime a business wants something from government, they come up with these studies," said Janee Briesemeister, a policy analyst for Consumers Union. "I've yet to see the study that verifies the jobs actually are produced."

Consumers Union and other consumer advocates oppose Bell's entry into the long distance market, an idea pending before the Texas Public Utility Commission.

Ms. Briesemeister said if Bell faced adequate competition in its local phone market, and other conditions were right, Consumers Union might drop its opposition. "I don't see that happening any time soon," she said.

Bell, which claims to already face plenty of competition for Texans' local calls, Thursday released a report showing that its entry into the state's long distance market would reduce costs, improve efficiencies and add $7.6 billion to the state's economy.

"The entire state will benefit," said John Cole, SWB Texas president. "More competitive long-distance rates will cause (business) productivity to grow and will spread economic growth across geographical boundaries and across industries."

The study, by Wharton Econometric Forecasting Associates Group of Massachusetts, did not reveal how many jobs Bell would add to its proposed Southwestern Bell Long Distance company. A company spokesman said no such number has been determined.

Ms. Briesemeister added that Bell is not telling the whole story about prices, either.

Bell charges existing long distance companies a fee everytime their customers make long distance calls. The company is working with the PUC to reduce the access fee. But it also is trying to get a surcharge added to customers' bills to make up the difference, Ms. Briesemeister said.

Sandra Haverlah, of Texas Citizen Action, said Bell's "good news" report is based on the idea that the company will be competitive in the long distance market.

"I don't think Bell can prove they are going to be competitive," she said. "It's a ploy to pressure the PUC into approving their petition."

Bell currently offers long distance service only within its local territories where long distance charges apply. The company has more than 9 million phone lines in Texas.

Under federal regulations, monopoly phone companies like Bell must face adequate competition before being allowed into the long distance market. That is one issue the PUC must determine before deciding to support Bell's entry into the state's long distance market.