Federal regulations restrict the local company from entering the long-distance business.

On Wednesday, after the market closed, the company told financial analysts that growth in the long-distance business had been slower than expected.

"We need to get into the long-distance business and give consumers a complete package of services."

Revenues in the long-distance business were $1.72 billion, down from $1.87 billion a year ago.

Previously, the bill put much greater restrictions on Bell entry into the long-distance business.

All seven of the regional Bells want to expand into the long-distance business.

The law does not say that a Bell company must win approval from its state regulators before getting into the long-distance business.

They are just getting into the long-distance business, and it could provide them with a platform.

The breakup of the Bell system in 1984 opened the long-distance business to competition.

Both the long-distance business and cellular telephone service are becoming more competitive, he said.