CloseCall America Files Formal Complaint with Maryland Public Service Commission Against Verizon Maryland, Inc.; Move Intended to Increase Consumer Choice.

Business Editors

STEVENSVILLE, Md.--(BUSINESS WIRE)--May 2, 2002

CloseCall America today filed a formal complaint with the Maryland Public Service Commission (PSC) against Verizon Maryland, Inc. The complaint charges that Verizon's refusal to resell -- or make available directly to the customers of its competitors -- voice messaging and digital subscriber line (DSL) services, is "an unreasonable and anti-consumer practice that is contrary to Maryland law and public policy."

In the complaint, CloseCall America "respectfully requests that the Commission act expediently to compel Verizon to make voice messaging and loop-sharing DSL (service that allows customers to use one line for both voice and DSL) available to its competitors on a wholesale basis or, in the alternative, direct Verizon to make these services available directly to consumers on a stand-alone and separately-billed basis without any disruption and/or lost functionality."

The complaint states that "Verizon has impermissibly tied their enhanced and local exchange services by refusing to provide voice mail and DSL services" on lines over which its competitors provide telephone services to their customers. "Moreover, Verizon punishes consumers who switch to competitive local exchange services by abruptly disconnecting pre-existing voice messaging and DSL services. These anti-competitive practices are harmful to competitive entry and contrary to consumer interests."

According to a recent survey by CloseCall America, 35 out of 305 customers requesting CloseCall local service ultimately did not become CloseCall subscribers because Verizon would have responded by disconnecting their voice messaging services.

The complaint further states that:

-- Verizon's refusal to make voice messaging and DSL services available on a
wholesale basis is calculated to chill local competition in Maryland.

-- The Commission has sufficient legal authority and a statutory mandate to
curtail Verizon's improper practice of tying voice messaging and DSL services
to its local exchange service.

-- The FCC and certain State Public Utility Commissions have determined that
wholesale access to Verizon's voice messaging and loop-sharing DSL service
serves the public interest. Specifically, the New York, Rhode Island and
Vermont state commissions have ordered Verizon to provide wholesale access to
voice messaging and such access is required by statute in Delaware.

Over the past 13 months, CloseCall America's President and CEO Tom Mazerski has sent three letters to the Maryland PSC outlining the barriers to entry that currently prevent consumers from switching local carriers and calling on the Commission to take three simple steps that would help to ensure true freedom of choice for local telephone service. These letters have gone unanswered.

"Because our concerns have not been addressed, we felt that filing a formal complaint against Verizon was a necessary step," Mazerski explained. "We hope that this complaint will result in action that puts an end to these unfair and anti-competitive practices by Verizon and allows consumers to select the local service provider of their choice, without losing their voice mail and DSL service."

About CloseCall America

Launched in 1999, CloseCall America is a full-service telecommunications company that provides long distance, local, digital wireless and Internet service to residential and small business customers, primarily in Maryland, Delaware and New Jersey. The company has developed a unique market niche by focusing on low-priced community calling which, according to company officials, is something no other company is doing. By offering long distance calling plans designed as multiple-state footprints, CloseCall allows consumers to choose the plan that best fits their calling patterns and save money on normally high-priced local toll calls. CloseCall's hotline is 877-81CLOSE (877-812-5673) and the Web site is http://www.closecallamerica.com.