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New Networks Institute Bruce Kushnick bruce@newnetworks.com Phone 212-777-5418 To Read the Petition
CONCERNED TECHNOLOGISTS AND CITIZENS FILE A PETITION WITH THE FCC TO INVESTIGATE THE BELL COMPANIES' FAILURE TO DEPLOY ADVANCED NETWORKS AND THEIR TREATMENT OF COMPETITORS Washington, DC ---December 9th, 1999 ---- New Networks Institute (NNI) and a host of leading technologists, companies and concerned citizens, filed the first in a series of complaints with the FCC and Congress against the Bell companies and GTE, which might prove to undercover one of the largest scandals in telecom history. (The Bells are: Bell Atlantic, BellSouth, US West, SBC Comm, Ameritech, and Pac Bell) Some of its co-signers have dubbed it "The Big Telecom Complaints". Co-signers include: Bruce Kushnick, Jerry Michalski, David S. Isenberg, LJ Davis, Peter Brennan, Joe Plotkin, Alexis Rosen, Ian Stevelman, J. Henry Priebe Jr., Daniel Berninger, Bruce Fancher, and others. "The Petition filed today, subtitled 'How the Bells' Stole America's Digital Future' concerns everything from the speed at which you can cruise the net, your access to new advanced networks, and even the price of all business and residential telecom services, past, present and future," stated Peter Brennan, Co-Chair, of the Billing Reform Task Force, and one of the co-signers. Based on extensive research, this Petition accuses the Bell companies of promising to deliver advanced, fiber-optic networks to get changes in state and federal laws that gave the Bells massive financial incentives to be used for new construction. Though these networks were never deployed, the Bells were able to keep the money. In many states these new laws also required the Bells to wire schools, hospitals and libraries, and bring advanced network services to disadvantaged neighborhoods. "We estimate that the total to date garnered from this bait-and-switch is a staggering $45 billion, and they continue to overcharge us. To add insult to injury, the Bells have written-off the older copper wiring, claiming it was being replaced with fiber optics. Though the wiring to the home was never replaced, and the old copper wiring is still in use, the Bell companies took almost $21 billion dollars in tax deductions," stated Bruce Kushnick, Executive Director of New Networks Institute. NNI et al is not alone in making these claims. The New Jersey Ratepayer Advocate stated: "...low income and residential customers have paid for fiber-optics every month, but have not yet benefited," (4/18/97) and the respected research firm, Economics & Technology, Inc. found identical problems in Bell Atlantic, Pennsylvania. NNI's research clearly indicates that this bait-and-switch occurred in virtually every Bell territory. "Early next year, the FCC will be releasing its next advanced network report. It is very important that this time around, they do not to do what is solely politic, but get the truth out and include hundreds of other documents in their analysis that my colleagues have unearthed. It is not a pretty picture, and it is time the regulators did something about it," stated Jerry Michalski, founder of Sociate. Also, this Petition requests that the FCC investigate the how the Bells are currently stifling competition by harming competitors, including Internet Service Providers (ISP) and CLECs (Competitive Local Exchange Companies). NNI's pilot survey of Internet providers found clear indication that the Bells have been delivering sub-standard customer services to the companies that are trying to provide competitive local DSL services. "We're part of this Petition because every other order we try to process for DSL has some problem and it cost us time and money. The Department of Justice found that Bell Atlantic's networks are not fully opened, and requested they be denied entry into long distance. If New York is supposed to be the standard for competition, I hate to think what every other state must be going through. It's a total mess. The Bells are roadblock on the I-way," stated Joe Plotkin, Director of Marketing, Bwaynet. Why this is important now: The FCC and Congress are considering laws that would give the Bell companies still more financial incentives and allow them into new businesses even though there is no significant competition (as required by the Telecom Act). In short, Congress would actually be rewarding the Bells for not delivering on their advanced network promises while overcharging customers. Kushnick said, "We need to send an unequivocal message to those who can change the current paradigm. The ongoing Bell monopoly must be held accountable for their advanced network promises and not be allowed to stifle emerging competition". A second Complaint, titled "The Real Truth in Billing", will be filed in January 2000. It addresses excessive Bell profits resulting from broken Bell company advanced network promises. For more information contact Bruce Kushnick at bruce@newnetworks.com or 212-777-5418. For a complete list of the co-signers, please go to http://www.newnetworks.com
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