That changed, with the signing into law of the Telecommunications Act of 1996 in February 1996. WorldCom Inc. The long-distance concerns have been able to provide local service in only a handful of areas, largely because the playing field is not level. Getting into the long-distance business is a relatively simple proposition, compared with running a wire to every customer that wants local service. The act requires the Baby Bells and GTE, which already offers long-distance service, to allow potential competitors to connect to their networks at any feasible location. The long-distance providers complained last month that the Baby Bells and GTE so far had failed or refused to provide the critical operations support systems.
Oversimplified statements containing hidden agendas only confuse the matter.
But another Baby Bell, US West Inc., has more or less admitted that it has been dragging its feet. Another consideration is that many people do not change their phone service providers very easily. If the pattern holds, the Baby Bells will have an advantage in offering long-distance services. New entrants into the local market cannot compete too much on price. Those agreements that have been reached between the Baby Bells and competitors provide wholesale discounts of 20 percent to 25 percent, Mr. Hall said.