MCI Reacts To Triennial Review Ruling

BACKGROUND: The U.S. Court of Appeals for the District of Columbia Circuit
today released its ruling on the Federal Communications Commission's (FCC)
"Triennial Review" local telephone competition order. This order established
the framework under which competitors can access the Bell-controlled public
phone network. MCI and other competitive local exchange carriers joined with
the FCC in defending portions of the order that ensure consumer choice in
the local telephone market.

The court sharply restricted the ability of MCI and other companies to offer
local phone service to residential customers by denying competitors the
right to lease the facilities still controlled by local Bell monopolies.
Without access to those facilities, MCI and others simply cannot continue to
offer lower prices and better residential services. The D.C. Circuit also
denied competitors the ability to provide innovative broadband services on
fiber facilities. If the Court’s opinion is not stayed, consumers will be
impacted in as few as 60 days.

The following statement should be attributed to Stasia Kelly, MCI general
counsel:

"Congress had envisioned that the Telecom Act would open local markets to
competition and ensure that consumers have freedom of choice when it comes
to local residential service. Yet, eight years later, local phone
competition is still under attack.

"Eliminating the FCC's local competition rules scraps the significant
progress we have made to deliver consumers lower rates and innovative
service. Three and a half million consumers have chosen MCI for local
service over the Bells, and more than 19 million households now use a local
phone provider other than the Bells. Additionally, local competition has
spurred network investment and created tens of thousands of jobs.

"The D.C. Circuit's decision leaves us with little choice but to seek an
emergency stay and full review from the U.S. Supreme Court.

"It is imperative that the FCC continue the fight to preserve competition,
by taking this case to the Supreme Court for a definitive decision. Millions
of Americans will pay the price if the FCC does not act to protect their
interests."