So Congress provided a way for the Bells to get into the long-distance arena.

Bell Atlantic waited a year longer than it originally anticipated to get into the long-distance arena in New York as the company tried to appease New York regulators.

Mark C. Rosenblum, AT&T's vice president for law and public policy, said the Bells ought to be let into the long-distance arena when there is widespread competition for local service.

At the same time, the fierce competition in the long-distance arena only highlights its relative absence in local markets.

That business, which made AT&T the giant it is today, is now shrinking amid ruthless price wars and the entry of huge regional Bell companies into the long-distance arena.

In New York State, for instance, where Bell Atlantic has made a strong move in the long-distance arena, AT&T has counterattacked by signing up more than 475,000 local phone users.

While no Bell has yet won approval from Federal regulators to sell long-distance service, few people believe the local phone companies will be kept out of the long-distance arena forever.

Nearly three years ago the Telecommunications Act opened a path for the Bells to enter the long-distance arena.

MCI, despite its difficulties in branching beyond the long-distance market, has nevertheless repeatedly shown itself a master of marketing prowess that has generally outpaced both AT&T and Sprint in the long-distance arena.

In South Carolina, the state public utility commission gave BellSouth unanimous approval to jump into the long-distance arena.