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 Says FCC’s Approval
of SBC/Ameritech Merger
Expected, But Disappointing

Association Believes Merger Heightens the Need
for Enforcement of 271 Process
and Efforts to Ensure Local Competition
Exists in Emerging Markets

The following statement should be attributed to H. Russell Frisby, Jr., president of CompTel (The Competitive Telecommunications Association). Based in Washington, DC, CompTel is the principal national association that represents more than 350 U.S. and international competitive communications companies and their suppliers. Members include national, regional and small firms who provide local, long distance, Internet, wireless and international communications services.

Washington, DC, October 7, 1999—"While the FCC’s decision to move forward and approve the SBC/Ameritech merger application was not unexpected, CompTel is disappointed with this decision and the merger’s conditions. Based on our preliminary review, it does not appear the FCC chose to strengthen the conditions imposed on the merging of two of the largest telephone monopolies in the United States.

"Absent these stronger conditions, CompTel believes the Commission must keep a close eye on these monopolies to promote local competition and protect against these companies’ using their monopoly market power to crush new competitors. We strongly urge that the FCC must now develop a strong program to closely monitor, enforce and exact the substantial penalties it has outlined, to assure that SBC/Ameritech’s good faith efforts and promises become a reality.

"We recognize that the FCC’s approval is more an effort to spur faster competition in the residential and small business markets than it is a recognition of the merits of the merger. While we support the FCC’s intentions, we disagree with its methods. A merger of this magnitude will do virtually nothing to change the already highly competitive nature of the long distance market, and is unlikely to drive competitive choices in local service any faster. It may even further slow the process. Without a doubt, this requires that the FCC must be all the more vigilant and strictly enforce the provisions of the Telecom Act’s Section 271, prior to granting these companies freedom to enter the long distance market for voice and data services."

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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.