NYNEX today received approval on a seven-year plan, with modifications, to remove restrictions on the company's earnings in New York in return for a series of consumer protections and benefits.
The state Public Service Commission voted to approve a plan to freeze basic phone rates, eliminate and reduce other charges, stimulate competition for local phone services, and accelerate investment in New York.
The Commission indicated that in approximately two weeks it would issue an Order outlining modifications to a settlement agreement signed in September 1994 by NYNEX and 16 parties representing government, industry, labor and consumers. NYNEX would then have 15 days to accept or reject the plan as modified.
Ivan Seidenberg, NYNEX chairman and chief executive officer, said, "When we started in this negotiation process more than two years ago, we set out to carefully balance the needs of investors, consumers and competitors. We wanted to achieve four fundamental objectives: a clean break from rate-of-return regulation; the stability of a long-term plan; the ability to control our investments; and pricing and marketing flexibility.
"While the modified plan appears to maintain the integrity of these principles, we intend to take a close look at the Commission's changes. Specifically, we need to closely examine language involving our ability to set prices in a competitive environment and our capacity to accelerate switch modification consistent with the intraLATA presubscription schedule proposed by the Commission. Finally, we need to be certain that subsequent dockets of the Commission preserve the principles of this plan."
NYNEX is a global communications and media company that provides a full range of services in the northeastern United States and high-growth markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland, Slovakia and the Czech Republic.
The Corporation is a leader in the telecommunications, wireless communications, cable television, directory publishing and entertainment and information services.