CMP.WERNER@R20.UTEXAS.EDU (Werner Uhrig) (01/16/86)
[from the Austin American Statesman, Jan 14, 1986]
'Baby' Bells chided for their "ambition"
WASHINGTON(AP) - Accusing the seven regional Bell Telephone companies of
"conglomerate ambitions" and "lack of interest" in providing good cheap local
phone service, the judge who presided over the breakup of the Bell System
restricted on Monday the companies' ability to expand rapidly.
He told them they still must come to him for permission every time they want to
enter into almost any business other than offering local telephone service.
Pacific Telesis, Ameritech and US West, three of the seven companies created by
the breakup, sought authority to offer certain telephone services without
having to ask for specific waivers.
All three companies expressed disappointment with the decision by US District
Court Judge Harold H. Greene.
....
As technology has changed since the divestiture on Jan 1, 1984, the companies
have sought waivers to enter into related and unrelated businesses.
A few months ago the same court established a detailed procedure and guidelines
for the regional companies to follow in requesting waivers.
Judge Greene ruled Monday that the companies were trying to "undercut that
process" by labelling their motions "request for clarification" rather than
"requests for waivers."
In turning down the three companies' requests, Greene attacked the "rush to
diversification" [by the 'regionals'] and accused them of "relative lack of
interest in basic telephone service itself."
Greene said he feared failures in some of the subsidiary businesses might lead
to "high or repeated rate increases" as bailouts "should they be neglectful or
commit errors which jeapordize the continued availability of the service."
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