Regional Bells Lose an Appeal Over Service

Ten years ago, the US Court of Appeals for the 5th Circuit in New Orleans voted 2-1 to reverse a ruling that would have allowed SBC, US West, and Bell Atlantic to enter the long distance market. The Regional Bell Operating Companies (RBOCs or Baby Bells) argued that provisions in the Telecommunications Act of 1996 were a "bill of attainder" or a specific punishment for past behavior without a trial. "First and foremost, we think that the [provisions of the law] are not punitive because they do not impose a perpetual bar," the court wrote. At the time, the FCC had not approved any RBOC bids to enter the long distance market -- the Commission was trying to use
approval as a way to open to competition the $110 billion local phone market.