Some regional Bell companies have asked the Federal Communications Commission (FCC) to establish new local access transport areas (LATAs) for the provision of data services. These "data LATAs" would have geographic boundaries that are larger than existing LATAs -- possibly encompassing entire states. Under the Bells' proposal, they would be authorized to provide data services within these larger LATAs under certain conditions -- most notably the utilization of separate subsidiaries.

In response to these efforts, the following statement was issued today by H. Russell Frisby, Jr., President of CompTel:

"During the past three years, the Bell companies have made woefully little progress in fulfilling their obligations under Section 271 of the 1996 Telecommunications Act to open up their local markets to competition.

Not only would granting the Bell companies this kind of relief exceed the Commission's statutory authority, such an approach is a blatant end-run around the Telecommunications Act. The Bell companies who seek this type of relief are clearly confused about what the FCC can and cannot do under the Act.

The Commission does have the authority to create and modify LATA boundaries; it does not, however, have the authority to forbear from enforcing the crucial requirements of Section 271, which expressly bars the Bell companies from providing interLATA services in their operating territories unless and until they meet certain competitive conditions. The Bells can draw and re-draw the LATA map to its heart's content, but the FCC cannot and should not rewrite the competitive checklist that must be fulfilled under Section 271 of the Act."