Media Contacts:

Pam Small Kathleen Franklin
(202) 296-6650 (301) 913-9778
(202) 296-7585 (301) 913-9779
psmall@comptel.org kfrankln@erols.com

For Immediate Release

CompTel Challenges Local Monopolies’ Bid
to Restrict Use of Extended Link
Network Combination

Association Urges FCC to Reject Monopoly Arguments For Lack of Evidence

Washington, DC, September 2, 1999—CompTel, the leading national association representing new competitive communications companies, in an ex parte letter filed with the Federal Communications Commission (FCC) yesterday, said the FCC should reject efforts by local telephone monopolies to restrict the local loop/transport mechanism commonly referred to as "extended link," (EEL). EELs enable new competitors to serve a broader number of customers in the local market through additional monopoly-owned central offices, without incurring higher costs or lengthy delays normally associated with establishing multiple collocation arrangements with the local monopoly.

CompTel’s Executive Vice President and General Counsel, Carol Ann Bischoff said that "CompTel strongly supports the Commission including the EEL in its list of mandatory elements without restrictions."

"The EEL option affords CLECs a number of benefits that will accelerate competition and position carriers to make the long term investments necessary to compete."

CompTel pointed out that the unrestricted access to EELs enable CLECs to more fully use existing investments by providing a cost effective extension of their networks and, at the same time, free up scarce central office collocation space that can be made available to other types of CLEC network components to support advanced data services, which will increase competition and choices in the local market.

CompTel challenged the local monopolies’ claim that unrestricted access to EEL would erode the special access services revenue stream and negatively affect support of universal service. "There is no evidence that universal service concerns have played any role in special access pricing," and furthermore, their assertion is an "effort to provide a policy justification for protecting these revenues from competition," according to CompTel’s Bischoff.

In addition, CompTel said the local monopolies’ arguments that restricting EELs would actually promote competition by encouraging facilities construction was ludicrous. "The Commission should view with skepticism [their] alleged concern for their competitors," and that "no competitive entrants supports the restrictions…," according to CompTel.

Throughout the FCC’s UNE remand proceeding expected to conclude in a few weeks, CompTel has advocated the wide availability of UNEs without customer- or use-related restrictions. CompTel believes such limitations are "contrary to the pro-competitive, pro-consumer goals of the 1996 Act and are inconsistent with the Five Pro-Competitive Principles for UNE Entry (PDF file or Word)," proposed to the FCC by the association in early August, said Bischoff. "It is critically important to the competitive industry that the FCC hold firm and remain committed to a restriction-free UNE environment," Bischoff added.

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Based in Washington, DC, CompTel is the leading national association representing more than 350 U.S. and international competitive communications firms and their suppliers who offer a variety of local, long distance, Internet and wireless services. The association’s members include large national firms, regional carriers and small local competitive companies. Visit CompTel on the Internet at http://www.comptel.org/, or call 202/296-6650 for more information.