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WorldCom Warns Tauzin Bill Will Drive Competition Out of
Broadband and Cripple the 'New Economy'Background: Rep.
W.J. "Billy" Tauzin (R., LA) has introduced legislation in the
U.S. House of Representatives, H.R. 1542, that would allow the
Bell local telephone companies to provide long distance data
services within their regions without first opening their
monopoly local markets to competition. This legislation
reverses the pro-competitive provisions of the landmark
Telecommunications Act of 1996.
The following
statement should be attributed to Bernard J. Ebbers, WorldCom
President and CEO:
"This ill-conceived legislation
sounds a death knell for the Internet economy. As a leader in
providing digital and data services, WorldCom knows that a
level playing field is critical to ensuring the type of true
competition that spurs economic growth and prosperity. And
despite Bell company claims, this bill would deliberately
create an unfair advantage for the monopolists, thereby
irreversibly restricting the growth of competition.
"Only strong enforcement of the Act -- not a pro-Bell
rewrite -- will enable competition while spurring deployment
of broadband and advanced services for all Americans. Claims
that this bill will hasten the deployment of high-speed
Internet in rural America are blatantly false -- the Bells
have been deploying DSL as fast as they can in urban areas
while ignoring or even withdrawing from many rural areas. In
fact, all this legislation would do is reward the Bells for
failing to comply with the Act.
"The bill would
further block competition by scuttling the federal requirement
that the Bells lease critical monopoly facilities to
competitors. H.R. 1542 would drive new and innovative players
out of the market and out of business, crippling the 'New
Economy' and slamming the door on consumers across the country
who want fast and reliable Internet connections and a true
choice for broadband service."
- 25 April, 2001
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