ALTS Opposes Michigan Senate Bill That Would Strengthen SCB/Ameritech's Monopoly Powers.

Business Editors/Hi-Tech Writers

DETROIT--(BUSINESS WIRE)--April 17, 2000

Bill is Unnecessary, Premature, and Would Allow SBC/Ameritech To

Ignore Federal and State Laws

The Association for Local Telecommunications Services (ALTS), the leading national trade association representing facilities-based competitive local exchange carriers (CLECs), today called on Michigan legislators to reject Senate Bill 1193 (SB 1193).

ALTS said the bill would allow SBC/Ameritech either to raise rates for Michigan consumers, or lower prices below its costs, limiting competition in the market.

"ALTS urges Michigan legislators to reject SB 1193 because it strengthens SBC/Ameritech's monopoly in Michigan, where CLECs are still struggling to overcome the barriers to competition," said John D. Windhausen, Jr., President of ALTS. "SB 1193 is anti-competitive and anti-consumer, and takes Michigan back to the dark ages of telecommunications by allowing the existing monopoly free rein to keep consumers from the benefits competition in local telecommunications."

According to ALTS, SB 1193 would give SBC/Ameritech unfettered discretion to either: (1) raise rates for Michigan consumers because of the absence of any regulatory oversight; or (2) arbitrarily price its services below costs and squeeze new entrants out of the market. Michigan consumers would be the losers, because the legislation would discourage CLECs from investing in new markets.

"SB 1193 also removes any service quality mandates, making it virtually impossible for consumers to benefit from low rates and high quality services," said Kim Kirby, ALTS' Vice President of State Affairs. "Essentially, SB 1193 gives SBC/Ameritech license to ignore state and federal law and sidestep any regulatory mandates that will bring local competition to Michigan."

Existing state laws and regulations already establish an effective process for deregulating telecommunications services when markets are competitive. However, Michigan's local telecom markets are far from being fully competitive.

"SBC would rather avoid necessary enforcement authority than comply with existing laws," said Kirby. "It's a bad bill that disassembles all past and ongoing efforts to foster competition in Michigan."

ALTS is the leading national industry association whose mission is to promote facilities-based local telecommunications competition. Created in 1987, ALTS has offices in Washington, D.C. and Irvine, California and now represents more than 200 companies that build, own, and operate competitive local networks.

For more information on ALTS, contact Crawford Public Relations at 703/318-5460 or visit the ALTS Web site at www.alts.org.