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 NEWS RELEASE 1401 H STREET NW SUITE 600 | WASHINGTON DC 20005-2164 | TEL 202.326.7360 | FAX 202.326.7339 |
FOR IMMEDIATE RELEASE
May 10, 2000
CONTACT: Michelle Tober
(202) 326-7370
USTA SAYS LOCAL PHONE NETWORKS ARE OPEN; DEMONSTRATES HOW ALTS IS ATTEMPTING TO SLOW DEPLOYMENT OF ADVANCED NETWORKS
Washington, D.C. -- The United States Telecom Association (USTA) today denounced efforts by the Association for Local Telecommunications Services (ALTS) to slow deployment of advanced networks by ALTS' competitors. Roy M. Neel, president and CEO of the United States Telecom Association (USTA), discussed his concerns prior to a Federal Communications Commission (FCC) forum on competitive access to incumbent local phone companies' "next-generation" facilities.
"ALTS is attempting to dictate how incumbent local telephone companies design their networks, and their request should be rejected for what it is: a boldfaced attempt to delay the provision of advanced services to the American public in a competitive environment," Neel said.
"Incumbent local telephone companies are bringing high-speed Internet access to millions of consumers through the only network that is wide open and available to any competitor," Neel continued. "ALTS should not be allowed to stifle that growth by dictating the capital investments of a competitor. This is an attempt by ALTS to use a regulatory forum to advance competitive local exchange carriers' (CLECs) business plans, which minimize their need to invest in new technologies."
Neel said that incumbent local telephone companies, unlike cable companies and CLECs, are required by law to provide competitors with access to the local telephone network, and USTA's member companies are doing that. When incumbents upgrade their networks to offer high-speed Internet access such as digital subscriber line (DSL) to more customers, competitors also benefit by being able to reach more customers with broadband telecommunications services, Neel said.
USTA filed comments with the FCC in March outlining the reasons why competitors and the FCC should not be involved in network configuration decisions. Neel reviewed those today:
1. It is bad public policy to involve the FCC, much less competitors, in making or approving decisions about deployment of networks. Any such process would seriously delay the deployment of broadband and other advanced services to consumers.
2. It is beyond the FCC?s authority to dictate such decisions. Carriers have a well-established right to design their networks however they determine will best serve the public. Potential competitors and the FCC should have no say in how carriers choose to spend their money and deploy technology.
3. It is contrary to the Telecommunications Act of 1996 to suggest that the right of competitors to resell or obtain unbundled portions of the incumbents' network somehow translates into a right to dictate the overall configuration of that network, much less the particular technologies that an incumbent decides to use in providing its own retail services.
"Incumbent local telephone companies have no obligations under the Telecommunications Act of 1996 to collaborate with competitors on network deployment decisions," Neel said. "Incumbents are only required to make their networks accessible under Section 251 of the Telecom Act. They are not required to consult with competitors prior to making decisions about deployment of network infrastructure."
Neel said that decisions on the deployment of new technologies should be made by market players, in response to market forces, not by regulators in response to special interest pleading from CLECs. He said that competitors should have no say in how any incumbent local telephone company chooses to spend its money and serve its customers.
Further, he said incumbent local telephone companies operate under a regulatory structure that hinders investment and puts them at a disadvantage compared to cable companies offering a similar service. "Policymakers should be lifting these regulations, not dictating new ones," Neel said.
# # # For more than 100 years, USTA has been representing the interests of the small, mid-size and large companies of the nation's local exchange carrier industry. The association represents more than 1,200 companies worldwide that provide local exchange, long distance, wireless, Internet, and cable services.
