FOR IMMEDIATE RELEASE
July 1, 1999
CONTACT: Kim Osweiler
(202) 326-7360

USTA Strongly Opposes Hollings Telecom Enforcement Bill:
Neel Cites Agreements Signed-Markets Open

Background: Earlier today, Senator Hollings (D-S.C.) introduced the Telecommunications Competition Enforcement Act of 1999. This legislation calls for penalties on Regional Bell Operating Companies who have not complied with the Federal Communications Commission's 14-point checklist by February 8, 2001. Bell Companies who are not found to be in compliance with the checklist by the deadline risk fines of up to $100,000 per day until the Commission deems the Bell Company in compliance. Further, the Act mandates that Bell companies who are not in compliance with the 14-point checklist by February 8, 2003, shall be ordered to divest itself of its networks within 180 days.

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

WASHINGTON, D.C. -- "USTA strongly opposes a bill introduced today by Senator Ernest Hollings. The evidence is clear: local telephone markets are wide open to competition. Any proposed enforcement measures in the bill are moot.

"Since enactment of the 1996 Telecommunications Act there have been over 5,500 interconnection agreements signed, sealed, and delivered across this nation's network by incumbent local exchange carriers with competitive local exchange carriers. This is in direct compliance with Section 251 of the 1996 Telecommunications Act. What's more is the Bell Companies and other local phone companies across America have invested billions of dollars since 1996 to upgrade systems and offices to be in full and complete compliance with the Act.

"This proposed legislation is pointless. If Senator Hollings really wanted to enforce competition, he would recommend stiff penalties against AT&T and MCIWorldcom for AVOIDING residential markets and only serving the business markets. The Senator also could focus his legislation on forcing AT&T and MCIWorldcom to pass through almost $23 billion in access charge reductions since 1991 to consumers.

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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