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NEWS
[ Thursday, April 5, 2001 ]

Customers await Verizon term acceptance

Collegian Staff Writer

Following the March 22 ruling by the Pennsylvania Public Utility Commission (PUC) ordering Verizon Pennsylvania to separate its wholesale and retail units, local phone companies and consumers are awaiting the company's official acceptance of the terms.

The agreement is an effort to facilitate competition on the local phone service market by allowing all competitors to have equal access to the telephone system.

"Ideally (the decision) it will compel Verizon to let competitors use the system easily," said Eric Levis, PUC press secretary. "It is advantageous to everyone involved because it is the result of a compromise."

State College should see no disruptions in service such as those that occurred this fall during the Verizon strike, said both Levis and Verizon representatives.

"Customers shouldn't notice anything, except for increased solicitation from competitors," Levis said.

The separation will be in the best interest of both competitors and consumers — particularly college students — because of the ensuing competition in the market, said Lenora Vesio, AT&T spokesperson.

"Competition is generally good for consumers, especially college students who are on a budget and need to save money while they can, because it lowers prices," Vesio said.

Local phone service competition has been an ongoing issue in Pennsylvania for years, Levis said. Initial steps toward the March ruling were taken in September 1999, when the PUC ruled that local phone competition across the Commonwealth was not advancing due to the Verizon monopoly.

All state competitors must use Verizon phone networks, Levis said. Competitors argue that two systems are used for phone services, one by Verizon and another, slower system reserved for competitors, hindering the service of companies such as MCI and AT&T by preventing them from providing fast service, Levis said.

The separation of Verizon's wholesale and retail units will force the company to use the same system for all its customers, he added.

However, Verizon claims this is already the case. The company's goal throughout these proceedings is to treat competitors the same as itself, said Verizon spokesman Lee Gierczynski.

"We have been doing this and will continue to do this," Gierczynski said.

The PUC restrictions include a code of conduct that Verizon must follow, stipulating that the company must provide non-discriminatory phone access to competitors and reduce costs for competitors serving rural areas.

The PUC will also substantially increase fines for the company should it violate performance standards.

Verizon has not yet decided if it will accept or reject the terms, since the final order has not been released by the PUC, Gierczynski said.

"The full order will outline everything mentioned in the (March 22) motion," he said. "Once it's released, we'll look it over and make a decision."

Companies such as AT&T, however, are looking forward to the official agreement.

"Much tougher rules are in order here," said Vesio. "With tougher enforcement and rules, companies like AT&T will have a fighting chance on the local phone service market."

However, a question remains as to whether local phone service competition across the state be sustainable.

A competitor's sustainability is debatable without a total breakup of the company. However, Vesio remains optimistic.

"With the rules, we will have a greater opportunity to compete in the long-term," Vesio said.

 



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