WorldCom Reacts To FCC 'Triennial Review' Ruling

BACKGROUND: The FCC today adopted new rules as part of its "Triennial
Review" proceeding that will enable WorldCom's MCI unit and other new local market entrants to continue offering the benefits of competitive choice.
The Commission's order preserves a strong role for state regulatory authorities in deciding if and when use by competitors of the "unbundled element platform" (UNE-P) will be phased out in specific geographic areas.

Regrettably, the FCC order prohibits competitors from reaching their broadband customers over Bell fiber networks. Such facilities already have long been deployed as part of normal Bell network upgrades. This relegates competitors to an inferior method of broadband delivery.

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

"A majority of the FCC has voted to preserve competition in the residential local market. This will enable us to continue providing and, indeed, expanding our revolutionary 'all-distance' service, The Neighborhood. Commissioners Martin, Copps and Adelstein are to be commended for crafting a reasonable compromise that recognizes the key role state regulators have played in bringing consumers the lower rates, better service, and innovative products that come only with competition. We are confident that state commissions will continue to make the responsible decisions necessary to keep their local markets open.

Unfortunately, changes in the FCC's rules regarding broadband are highly detrimental to competition. This order prohibits competitors from accessing existing and future fiber in Bell networks, stifling their ability to provide consumers with the benefits of competitive choice. As Commissioner Copps stated, this will perpetuate the ultimate bottleneck in consumer access to competitive broadband services."