MCI WorldCom Calls For Competitive ISP Access To All Telecom Networks In Pennsylvania
Supports Legislation to Require 'Open
Access'
HARRISBURG, PA, October 21, 1999 - MCI WorldCom told the
Pennsylvania House Consumer Affairs Committee today that all last-mile
telecom providers, regardless of whether they use fiber, cable or
wireless to reach their customers, should be required to open their
networks to competitors, who in return would pay a fair price for using
those networks to reach the market.
Speaking in support of HB-1516, which among other things would
require AT&T to open its proprietary cable networks to competitors
- and alternative Internet service providers in particular -- MCI
WorldCom Government Affairs Senior Manager Francis Valluzzo told the
Committee that MCI WorldCom is uniquely positioned to argue in favor of
so-called 'open access'. He pointed out that MCI WorldCom led
the charge to open the long distance market once dominated by AT&T
and currently is battling on the front lines to break open the
Bell-controlled local phone markets.
"MCI WorldCom has always advocated for open competition in all
markets," Valluzzo testified. "We believe that in a
competitive market, restrictions to cable network access, where that
cable may end up being a customer's sole way of accessing the
Internet, are no more acceptable than restrictions to accessing long
distance or local phone networks."
Valluzzo said open access is particularly important in the dawning
era of high-speed Internet access. He pointed out that AT&T and its
@home affiliate effectively could become the only high-speed Internet
choice for numerous Pennsylvanians if it refuses to allow other
providers to access its network, thereby controlling the rates and
services available.
"HB 1516 will establish important public policy to ensure
Pennsylvanians are not denied the choice of which company provides the
broadband path into their homes or businesses," he said. "MCI
WorldCom is an open access company that believes competitors must be
allowed to reach customers any way they can, whether that means
building networks or leasing capacity from other providers. Allowing a
single company to restrict access to the critical 'last mile'
into a customers home or business would upset the dynamic that will
allow the Internet to develop as users demand, not as a monopoly access
provider warrants."
MCI WorldCom noted several benefits of HB 1516:
1. It would ensure competitors and consumers could elect to use
cable or phone networks to offer or purchase broadband service;
2. It would prevent AT&T, which will control 60 percent of the
nation's cable lines, from abusing its market power;
3. It would protect the public interest by ensuring that access to
the Internet remains open and competitive, preserving consumers'
choice in service, price and content;
4. It would prevent the dominance of any particular technology in
providing Internet access;
5. It would provide incentives for cable companies to build out
broadband infrastructure by sharing the cost of deployment among all
parties;
6. It would accelerate the rate of consumer penetration leading to
more infrastructure investment.
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.