MCI To Illinois Governor: Veto Phone Service Rate Hike Plan

Legislation Could Crush Local Phone Competition

Background: In drastic about-face, the Illinois Senate today approved legislation (SB 885) that would dramatically boost the rates competitive telephone carriers pay SBC to access piece-parts of the public phone network under federal and state law. This SBC-backed bill could drive up local phone rates in Illinois and destroy local phone competition just as it is beginning to take hold. The legislation now goes to Gov. Rod Blagojevich for consideration.

The following statement should be attributed to Wayne E. Huyard, President of MCI Mass Markets:

"It is troubling legislators would take an issue that impacts so many consumers and ramrod it through the General Assembly with almost no deliberation. The Illinois Commerce Commission has a review of wholesale rates underway. It’s baffling that lawmakers overrode an agency established to keep politics out of issues like this. Clearly, SBC is driving this legislation in order to force competitors -- and the reality of lower rates -- out of Illinois.

"Unfortunately, if the governor signs this bill, the losers will be the Illinois consumers. MCI will have no choice but to raise the price of our popular local service offerings in Illinois and lawmakers can kiss goodbye the vibrantly competitive local phone market that so many Illinois consumers have come to enjoy. We hope Gov. Blagojevich will do the right thing and veto this ill-conceived scheme."