Article: Justice Department Decision Buoys BellSouth on Local Phone Service Competition.

Byline: Robert Luke

Jun. 10--The U.S. Justice Department decided Wednesday not to seek a Supreme Court challenge to revive rules aimed at increasing competition for local phone service.

In Georgia, the move potentially could make it more difficult for AT&T, MCI and other so-called competitive local exchange carriers to snatch more customers from BellSouth, particularly if the carriers have to pay more to lease parts of BellSouth's phone network.

Some providers could pull out of rural and smaller urban markets to focus on larger ones, such as Atlanta, said Robert B. Baker, a member of the Georgia Public Service Commission. And prices could rise.

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