New Networks Institute Click for FREE REPORT, (PDF) Click for EXECUTIVE SUMMARY (TEXT) Putting the Survey Into Perspective:  FCC and DOJ Findings Corroborates Data ======================================================== ======== FOR IMMEDIATE RELEASE ======= Bruce Kushnick bruce@newnetworks.com Phone 212-777-5418 To Read the Complaint or Summary http://www.newnetworks.com To Contact Internet Providers, survey@newnetworks.com   INTERNET SERVICE PROVIDERS (ISPs) ARE RECEIVING SUB-STANDARD CUSTOMER SERVICES, COMPETITION STIFLED, NEW SURVEY FINDS DSL CUSTOMERS WHO USE COMPETITIVE ISPS ARE BEING HARMED New York--April 12th, 2000 --- New Networks Institute (NNI) today released the results of a survey of America’s Internet Service Providers, focusing on their relationship with the local phone companies, including the Bell companies (Bell Atlantic, BellSouth, SBC Communications (Pac Bell, Ameritech and Southwestern Bell) and US West), and GTE. "Small and mid-sized ISPs represent almost half (46%) of all online customers (source: Boardwatch Magazine), and this group has generated some of the real innovations of the Internet and World Wide Web. However, based on the findings of this survey, the local Bell companies and GTE are causing serious harm to the Internet Providers and their customers. This includes not only a loss of revenues, but the Bells are also stifling competition and the growth of America's Digital Future" stated Bruce Kushnick, Executive Director of NNI. Primary Findings: SMALL ISPs Are Receiving Substandard Customer Services From The Local Phone Company. Across the board, the ISPs rated their services as "sub-standard" in virtually all categories, and only 8% of ISPs gave the Bells an overall passing grade (above 6.5 out of a possible 10). On a scale of one to ten, the survey respondents gave the Bells an overall average of just 3.7, a seriously failing grade. There is a Litany of Problems Being Created by Bells. According to the respondents, 62% of ISPs claim that phoneline problems happen frequently or continually, 57% state that trying to have orders fulfilled takes months, while 46% state it can take days or longer for repairs. These Problems Are Not Isolated. There is a Clear Pattern of Abuse Throughout The Entire Bell System And GTE. From Texas to California, New York to Florida the problems encountered are happening throughout the Bell System and GTE DSL Deployment Is Being Stifled By The Bells There are a litany of problems facing the marketing of DSL and the interface with the Bell companies. For example: 71% of ISPs have had lost orders by the local phone company 59% have had their customers "slammed" by the Bell (meaning that their customer was changed over to the local Bell without their permission) 53% have had their customers told they wouldn’t have problems if they switched to the Bell company product. ISPs That Are Using CLECs (Competitive Local Exchange Companies) Feel That The Competitors Deliver Better Services, But That They Are Also Hampered By The Bell Companies. Throughout the responses, those who use a CLEC gave the companies almost double the rating of their Bell/GTE counterparts. However, as most of the ISPs point out, the CLEC still has to interface with the Bell company and this still causes problems. The Majority Of Small ISPs In Secondary Markets Across America Do Not Have A Choice Of Providers, And Are Being Priced Out Of The Bell’s DSL. In many states, non-urban ISPs are still totally dependent on the local Bell to provide services and the majority point out that the Bells has either freezed them out of the market by offering services below cost, or they are not giving the ISP adequate services. The Majority Of ISPs Are NOT Receiving Adequate Help From Their Local Public Service Commissions To Stop Bell’s Abuses, Even Though The Bells are Violating The Telecom Act of 96 And State Laws. Almost 75% of ISPs have attempted to get help from their state Commissions regarding their problems with the local Bell. However, the majority, 63% of those who approached the Public Service Commission to get help got no results. Customers of the Internet Providers are Being Harmed by the Bells Actions. When phonelines aren’t working or the phone company doesn’t show up for an installation, this has a direct impact on the customers who are using the ISPs’ services. "With 89% of ISPs believing (and documenting) that they are being harmed, NNI believes that the FCC and the states should immediately investigate the ISP’s claims of inadequate customer services and anti-competitive practices by the Bells and GTE, states Kushnick. NNI acknowledges that even though this survey was conducted using a random mailing to ISPs by the United States Internet Service Providers Alliance (USISPA), any survey that is conducted online and is "self –selecting", has its limitations. For more information, please contact Bruce Kushnick at bruce@newnetworks.com or 212-777-5418.