Nation's Utility Consumer Advocates Commend Members of Congress for Questioning Anticompetitive Verizon Requests

Approval could eliminate local telephone choices in Boston, New York, Philadelphia, Pittsburgh, Providence, and Virginia Beach

Silver Spring, MD (PRWEB) July 31, 2007 -- The National Association of State Utility Consumer Advocates (NASUCA) - an association of consumer advocates in more than 40 states and the District of Columbia - today commended Members of Congress for highlighting the anticompetitive and harmful impacts of Verizon's forbearance requests last week at a hearing of the U.S. House Subcommittee on Telecommunications and the Internet, and reiterated its opposition to Verizon's petition for being contrary to the public interest.

"We applaud House leadership for keeping their commitment to America's consumers and for protecting the public interest," said John R. Perkins, President of NASUCA and consumer advocate for the state of Iowa. "At a time when Washington policymakers are attempting to increase competition for voice and broadband services, it would be disastrous for the FCC to permit the monopoly telephone companies to push their competitors out of business."

We applaud House leadership for keeping their commitment to America's consumers and for protecting the public interest

At a time when Washington policymakers are attempting to increase competition for voice and broadband services, it would be disastrous for the FCC to permit the monopoly telephone companies to push their competitors out of business.

Residential consumers and small businesses rely on meaningful competition to help keep prices low and service quality high

If the FCC grants Verizon's forbearance requests, the negative impacts on consumers and the public interest would be swift and severe.

usurp congressionally-enacted statutes in a sweeping manner

great concerns about the effect on competition and consumers that these petitions pose.

directly and negatively hurt the competitive industry who's been playing by the rules, and it will hurt my constituents they serve.

"Residential consumers and small businesses rely on meaningful competition to help keep prices low and service quality high," said Perkins. "If the FCC grants Verizon's forbearance requests, the negative impacts on consumers and the public interest would be swift and severe."

NASUCA has witnessed the ability of telephone companies to use and abuse the ability to request forbearance of various obligations required by the Telecommunications Act of 1996. The consumer advocates believe the result has not been in the public interest.

A recent example has played out with unfortunate results for consumers. In granting Qwest forbearance from loop and transport requirements in part of the Omaha metropolitan area, the FCC believed the company would voluntarily keep the market open to competition by continuing to make the necessary parts of its system available. Instead, Qwest has effectively shut down the market and its largest competitor, McLeod, announced plans to exit the Omaha area. Hundreds of thousands of residents are being affected. McLeod recently filed a petition asking the FCC to reverse its Omaha decision based on Qwest's failure to make its system available.

If the FCC approves Verizon's requests, the action would deregulate elements of Verizon's ratepayer-subsidized network and permit Verizon to raise prices - a decision which could come as early as September 2007. NASUCA believes the negative impact on competition in these areas could be severe. Consumers would likely have fewer choices for telecommunications and broadband services, and Verizon would be permitted to solidify its already strong hold on the market.

About the National Association of State Utility Consumer Advocates (NASUCA)

NASUCA is a non-profit, national organization of 43 state offices designated to represent consumers in state and federal utility proceedings. NASUCA regularly participates in proceedings before the FCC and other federal regulatory agencies.

Background Information

At a Tuesday hearing on the oversight of the Federal Communications Commission, members of the U.S. House Subcommittee on Telecommunications & the Internet highlighted the anti-competitive impact that Verizon's forbearance request - if granted - would have, impacting millions of U.S. residential consumers and small businesses.

Subcommittee Chairman Ed Markey (D-MA) argued that granting these petitions would "usurp congressionally-enacted statutes in a sweeping manner" and said that he has "great concerns about the effect on competition and consumers that these petitions pose."

Subcommittee Vice-Chairman Mike Doyle (D-PA) commented that the forbearance requests could "directly and negatively hurt the competitive industry who's been playing by the rules, and it will hurt my constituents they serve."

Representatives Dingell (D-MI), Deal (R-GA), Solis (D-CA), Stearns (R-FL), and Eshoo (D-CA) also criticized the FCC for its failure to uphold the public interest in its forbearance proceedings.

Contact:
David Bergmann, Office of the Ohio Consumers' Counsel
(614) 466-8574

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