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Copyright 2000 P.G. Publishing Co.  
Pittsburgh Post-Gazette

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November 9, 2000, Thursday, SOONER EDITION

SECTION: BUSINESS, Pg. F-1

LENGTH: 443 words

HEADLINE: AT&T DISPUTES REPORT FAVORABLE TO VERIZON

BYLINE: FRANK REEVES, POST-GAZETTE STAFF WRITER

BODY:


State regulators soon are expected to release a report by consultants on whether Verizon's computer systems can handle customer orders to switch their local service from Verizon to AT&T, MCI Worldcom and other competitors.

The state Public Utility Commission received a draft copy of the report, prepared by KPMG, last week. KPMG is an international consulting firm with offices in Pittsburgh. If the report concludes that Verizon's customer-switching systems are adequate, it would bolster Verizon's claim that it has opened the local phone market, which it has long dominated, to competition.

Verizon Communications Corp., formed earlier this year after a merger of Bell Atlantic and GTE, has asked the Public Utility Commission and the Federal Communications Commission to approve a plan that would allow it to offer long-distance service in Pennsylvania.

But under the 1996 federal Telecommunications Act, Verizon must prove that it has opened its local phone monopoly to competition before the FCC may approve its application to provide long distance.

Though the PUC hasn't released the report, Verizon is touting the results:

"The KPMG report shows our systems are performing extremely well," said Daniel Whelan, president of Verizon Pennsylvania. "Their performance proves that Verizon's systems meet the requirements of the Telecommunications Act for long-distance entry."

Verizon has asked the PUC to speed its review of Verizon's application to provide long-distance service.

But Jim Ginty, president of AT&T Pennsylvania, yesterday sharply criticized Verizon for trying to "short-circuit" the PUC's review process. He said that state regulators should follow the review process they laid out last year.

AT&T has repeatedly complained that Verizon wants to move into the long-distance market, where AT&T has long been dominant, before opening up local phone service to competition.

Ginty said neither he nor AT&T officials have read the KPMG report. But based on the way KPMG tested Verizon's customer-switching systems in New York, Ginty said he was concerned that the tests used did not reflect real life situations.

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LOAD-DATE: November 9, 2000




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