Printable Version

ENGLEWOOD, Colo., February 2, 2000 - Rhythms NetConnections Inc. (Nasdaq: RTHM), today announced its support for a recent decision by the California Public Utilities Commission (CPUC) to move forward on line sharing, a process that will allow customers to order digital subscriber line (DSL) services from competitive providers over the same telephone lines that already carry their voice services.

"This ruling continues the national trend of promoting competition in the broadband marketplace," said Jeffrey Blumenfeld, Chief Legal Counsel for Rhythms. "In California, competitive providers merely want Pacific Bell and GTE to treat us the way they treat themselves. By taking this important step towards ordering line sharing, the Commission demonstrated its agreement with this basic question of fairness.

Ultimately, line sharing will save Californians money and give them more options for their broadband service needs by putting competitive providers like Rhythms on a level playing field with Pacific Bell and GTE," continued Blumenfeld. "We will continue to work with the Commission to ensure fair competition for all customers in both the interim and permanent arrangements."

This CPUC decision is an interim step that requires the incumbent local exchange carriers (ILECs), Pacific Bell and GTE, to submit a compliance filing by March 1, 2000 to inform the CPUC how they plan to implement and price line sharing on an interim basis with competitive providers. The ILEC filing will also tell the CPUC how the incumbents plan to comply with the Federal Communications Commission's November 1999 line-sharing order. The CPUC will then announce an additional proceeding in which all competitive providers will participate to set permanent pricing as well as specify how GTE and Pacific Bell will comply with their other obligations contained in the FCC line sharing order.

The CPUC issued this order in response to a new California law mandating that the regulatory body implement line sharing by April 10, 2000.

California is the second state to implement line-sharing agreements between ILECs and competitive providers. Minnesota issued their final line-sharing order last spring.

About Rhythms

Rhythms NetConnections Inc. (Nasdaq: RTHM) is a North American provider of DSL-based, high-speed Internet access and networking solutions. Rhythms was chosen by FORTUNE magazine as one of its "Cool Companies for 1999." Based in Englewood, Colo., Rhythms currently serves 39 markets, covering 70 MSAs. Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at http://www.rhythms.com/.

Contacts:

Corinne Mahoney
Rhythms Public Relations
303-876-5052
cmahoney@rhythms.net

Eric Hoffman
Edelman Public Relations
202-326-1724
eric_hoffman@dc.edelman.com

####
This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks. Thes risks include risks associated with the demand and competition for the services and products to be sold by Rhythms, the continued availability of adequate financing to support our activities, the timing of rollouts in additional regions, the number of potential customers who could access such services, and our dependence on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment. For an expanded discussion on these and additional risks associated with Rhythms' business, please see the documents filed by Rhythms NetConnections Inc. with the U.S. Securities and Exchange Commission.

back to current news

Legal Information and Privacy Policy
Copyright © 2001 Rhythms NetConnections Inc. All rights reserved.