FOR IMMEDIATE RELEASE
July 15, 1999
CONTACT: Kim Osweiler
(202) 326-7360

How to Solve AT&T's Open Access Issue?

Deregulate the Local Phone Companies and
Consumers Will See Real Benefits of Competition

Background: On Wednesday, July 14, a Congressional Hearing was held in the United States Senate on the AT&T-MediaOne merger. Senator Orrin Hatch (R-Utah) chaired the committee and led the discussion on the proposed merger and its effect on the status of competition in the communications marketplace.

The following statement may be attributed to Roy Neel, president and CEO of the United States Telephone Association (USTA).

WASHINGTON, D.C. -- "Yesterday's Senate hearing on AT&T's acquisition of MediaOne brought to light a number of critical issues engaging the telecommunications industry right now. First, it showed clearly how this monster company, AT&T, seems to be growing and growing in the marketplace virtually unregulated, while America's local telephone companies are straddled with debilitating regulations.

"Second, competition in telecommunications was the rallying cry at the hearing, but USTA member companies are not allowed to compete without stifling regulations that create an unlevel playing field, while competitors like AT&T have a 'walk-in-the-park' to select customers of their choosing. Onerous, burdensome regulation of the local phone industry shackles the ability of local companies to deploy broadband services like DSL. All Americans suffer as a result. Congressional legislation which seeks to deregulate the provision of these services is the answer to jumpstart competition. The FCC should stop discriminating against incumbent local exchange carriers by regulating their deployment of DSL and other advanced services while supporting AT&T's ability to make unregulated broadband investments.

"And third, the issue of open access illustrates a continuing plan by AT&T to keep competitors out of areas they serve. USTA member companies are focused on competition and deregulation, not withstanding the irony of AT&T fighting to keep its cable platform closed to Internet service providers, while it fights just as aggressively - even in yesterday's hearing - to ensure the local phone companies open their markets to competition. Sounds like AT&T would like to have its cake and eat it too! America's local phone companies have opened their markets in full and complete compliance with the 1996 Telecom Act. Congress should not be swayed by the shell game AT&T is playing and should focus on making all markets deregulated and open to full and complete competition."

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.

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