WorldCom Warns Tauzin Bill Will Drive Competition Out of Broadband and Cripple the 'New Economy'

Background: Rep. W.J. "Billy" Tauzin (R., LA) has
introduced legislation in the U.S. House of Representatives, H.R. 1542,
that would allow the Bell local telephone companies to provide long
distance data services within their regions without first opening their
monopoly local markets to competition. This legislation reverses the
pro-competitive provisions of the landmark Telecommunications Act of
1996.

The following statement should be attributed to Bernard J. Ebbers,
WorldCom President and CEO:

"This ill-conceived legislation sounds a death knell for the Internet
economy. As a leader in providing digital and data services, WorldCom
knows that a level playing field is critical to ensuring the type of
true competition that spurs economic growth and prosperity. And despite
Bell company claims, this bill would deliberately create an unfair
advantage for the monopolists, thereby irreversibly restricting the
growth of competition.

"Only strong enforcement of the Act -- not a pro-Bell rewrite -- will
enable competition while spurring deployment of broadband and advanced
services for all Americans. Claims that this bill will hasten the
deployment of high-speed Internet in rural America are blatantly false
-- the Bells have been deploying DSL as fast as they can in urban areas
while ignoring or even withdrawing from many rural areas. In fact, all
this legislation would do is reward the Bells for failing to comply
with the Act.

"The bill would further block competition by scuttling the federal
requirement that the Bells lease critical monopoly facilities to
competitors. H.R. 1542 would drive new and innovative players out of
the market and out of business, crippling the 'New Economy' and
slamming the door on consumers across the country who want fast and
reliable Internet connections and a true choice for broadband
service."