SBC Wants Cash From Threatened Carriers

SBC Communications Inc., the second-biggest local-telephone company, said it wants advance payments before connecting phone calls for WorldCom Inc. and other long-distance carriers that it considers credit risks.

SBC said it will ask the Federal Communications Commission for permission to require one-month deposits and quick payment from companies that owe SBC at least $1 million for using its network to complete calls.

Separately, the company said it is revising its balance sheets for the last two quarters after misstating the maturity of $750 million of debt. The news, announced after the markets closed, sent SBC shares down as much as $1.05 to $26.50 in extended trading, after closing up 10 cents to $27.55 on the NYSE.

SBC classified the short-term borrowings, which mature in February 2003, as long-term debt. The mistake has no effect on the company’s total debt or earnings, a spokesman said.