MCI WorldCom Asks PSC to End Competition Stalemate by
Ordering Network Access, Systems Testing
CHICAGO, September 23, 1999 - After enduring years of Ameritech
delays, MCI WorldCom is today asking the Michigan Public Service
Commission (PSC) to order Ameritech to take key steps to open its local
phone monopoly to competition as required by law. Specifically, MCI
WorldCom asks the Commission to order Ameritech to allow competitors to
lease piece parts of the existing public phone network it controls and
to undergo third-party testing of critical operations support systems
(OSS) that competitors must use to serve their customers.
For more than two years, Ameritech has refused to provide
competitors access to its network or to put in place fully-automated,
functioning OSS that allows competitors to order, install, bill and
repair their customers' service. Both are part of a well-defined
list of requirements mandated by the federal Telecommunications Act of
1996 and Federal Communications Commission (FCC) rules - which were
recently upheld by the U.S. Supreme Court.
"Because of Ameritech's stonewalling, it still is
impossible for competitors such as MCI WorldCom to serve large portions
of the local phone market in Michigan, particularly small business and
residential customers," said Joan Campion, regional director for
MCI WorldCom Public Policy. "We're tired of waiting for
Ameritech to decide when it will choose to obey the law and open its
markets, so we are asking the Commission to force Ameritech's
hand."
The Act requires the Baby Bell monopolies, including Ameritech, to
take very specific steps to allow competitors into their local phone
markets. It further states that local markets be irreversibly open to
competition before monopolies such as Ameritech can offer long distance
service to customers within its five-state service territory.
In denying Ameritech's only long distance application (for
Michigan) in 1997, the FCC ruled that the monopoly had failed to take
the necessary steps to open its local phone market. But, faced with the
possibility of losing its monopoly revenue streams, Ameritech decided
to forego fixing its problems and gave up on subsequent long distance
pursuits. As a result, competitors continue to be locked out of the
local market years after federal law required an end to Ameritech's
monopoly.
"There is no reason why Michigan phone customers should be
denied the benefits of local competition while consumers in other
states, New York in particular, are beginning to enjoy the lower
prices, improved service and new and innovative products that
competition brings," Campion said.
MCI WorldCom complimented the Michigan PSC on its pro-competitive
policy record and promised that if it compels Ameritech to actually
open its market, as regulators in New York are working to do with Bell
Atlantic, MCI WorldCom would be among the first new companies to offer
widespread phone service in Michigan.
"New York regulators recognized that only they could force the
local monopoly to open its market," Campion pointed out. "As
a result of strong, pro-competitive decisions and ongoing PSC efforts
to level the playing field there, MCI WorldCom is currently providing
more than 160,000 customers statewide an alternative to the
take-it-or-leave-it Bell service they've had for more than a
hundred years. By working with the Michigan PSC, we look forward to
offering Michigan consumers the same alternatives once the market is
open here."
In Michigan, two critical hurdles are OSS testing and competitor
access to the network. OSS testing by an independent third-party in New
York highlighted many problems with the systems there, which Bell
Atlantic continues to correct under regulatory supervision. MCI
WorldCom believes the same sort of testing regimen would accelerate
competition here too.
In addition, Ameritech has refused to lease competitors combinations
of unbundled network elements (UNEs), known as "UNE-P" or
"platform," which MCI WorldCom needs to serve residential and
small business customers. MCI WorldCom currently serves business
customers in Ann Arbor, Detroit, Flint, Grand Rapids and Lansing using
its own facilities, but cannot compete on a local residential level
unless Ameritech allows it to use this technology, in accordance with
federal law.
MCI WorldCom is a global leader in communications services with 1998
revenues of more than $30 billion and established operations in over 65
countries encompassing the Americas, Europe and the Asia-Pacific
regions. MCI WorldCom is a premier provider of facilities-based and
fully integrated local, long distance, international and Internet
services. MCI WorldCom's global networks, including its
state-of-the-art pan-European network and transoceanic cable systems,
provide end-to-end high-capacity connectivity to more than 40,000
buildings worldwide. MCI WorldCom is traded on NASDAQ under WCOM. For
more information on MCI WorldCom, visit the World Wide Web at
http://www.wcom.com.
(EDITORS NOTE: For copies of the filing, please contact Tim Guillen
at 312-470-4893)
