Z-Tel to offer local service

Since the Telecommunications Act of 1996, competing telephone companies have struggled to crack open the residential market.

Z-TeI Technologies Inc. based in Tampa recently announced an acquisition that positions them to profit from a recent Federal Communications Commission order that throws open the local phone service floodgates.

Z-Tel's prospective purchase of Touch 1 Communications Inc., a telemarketing firm based in Atmore, Ala., means the company will have the help of a veteran in the telecommunications war.

The company's background, infrastructure and customer base will allow Z-Tel to roll out local phone service across the country as quickly as the telecommunications company can enter states. The resources in place will lower the cost of acquiring clients by 50 percent, said Mark H. Johnson, Z-Tel's treasurer and director of investor relations.

This is a major advantage in an industry where most states have no competition for residential telephone service. Competition for business service has existed since the Telecommunications Act was revised four years ago.

It is within this ground-breaking arena that Z-Tel expects Touch I to help build business.

Touch I...