For Whom the Bells Toll

Get ready for even more of those calls asking you to switch long distance carriers. While the rest of the country sat on the couch watching football, highly-paid telecom lawyers spent yesterday scrambling to appeal the dramatic New Year's Eve ruling that allows the regional phone companies to enter the long-distance market. Officials of both the government and long-distance carriers AT&T, Sprint and MCI said they would challenge the decision, which chips away at yet another provision of the troubled 1996 Telecommunications Act.

The stakes are highest for AT&T. Unlike its long-distance competitors who serve mainly businesses, AT&T makes most of its money from residential customers -- the very people who might prefer the old days of one-stop shopping for local and long distance phone service. AT&T's chief challenger is SBC Communications, a consortium of several smaller Baby Bells that provides local service throughout much of the southwest. SBC wants to expand into the California residential long distance market, a telecom gold mine where existing carriers rake in half their total profits.

Although local carriers say they could be ready to go long in as little as 30-40 days, the billions at stake mean that a final ruling will probably be tied up in court for some time. But it might not be too early for Candice Bergen to think about switching to SBC.