AT&T; Loses Bid, but Baby Bells Take a Hit
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The Federal Communications Commission on Monday denied a motion by AT&T; Corp. to change the agency’s decision to allow Bell Atlantic Corp. to offer long-distance telephone service in New York.
But the damage was already done to Bell Atlantic and other former Baby Bell shares Monday, which fell sharply.
AT&T; late Thursday asked the commission to revoke its approval by the close of business Monday, saying otherwise AT&T; would file a challenge in the U.S. Court of Appeals for the District of Columbia.
AT&T; said Bell Atlantic had failed to meet legal requirements for providing access to its local networks.
By law, Bell Atlantic and other phone companies created 15 years ago in the breakup of the AT&T; cannot offer long-distance service until they prove their local markets are open to competitors.
Investors sent Bell Atlantic down $3.81 to $60.13, BellSouth down $3 to $44.56 and US West down $3.25 to $69.75.
Also hit hard were GTE, down $3.81 to $69.63, and MCI WorldCom, down $3 to $78.
AT&T; also slid, losing $2.63 to $50.
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