Consumer Groups and APT Warn NARUC of Risks to Service, Rates and Jobs with Proposed 'Wholesale/Retail' Telephone Company Split in Pennsylvania.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--Feb. 27, 2001

Letter Delivered to NARUC President and Communications Committee

In a letter to the nation's leading state regulators, the Alliance For Public Technology (APT) and a broad range of other consumer groups voiced concern about proposals to break-up local telephone companies into wholesale and retail units, also known as structural separation.

APT and 11 other consumer groups sent the letter to Nora Mead Brownell, President of the National Association of Regulatory Utility Commissioners, as well as to other key NARUC members. NARUC is a nonprofit membership organization of state regulators for the telecommunications, energy, and water utilities, meeting this week in Washington, DC.

APT is the leading consumer voice for more rapid deployment of high speed, broadband technology to every home in America, and the other signatories are representative of its broad-based constituency. All are concerned that this proposal would divert attention and resources from greater broadband deployment to consumers and put "service, rates and jobs at risk."

According to the letter, "Our concerns are those of residential telephone consumers, workers, people with disabilities, rural users and low-income consumers." Debbie Goldman, Chair of APT's Public Policy Committee, noted that structural separation would mean "the integrated network's economies of scope and scale that can be used to the benefit of traditionally underserved communities would be lost to the high end of the market."

In particular, the letter cited the potential to:

- Divert resources used for deployment of advanced services and network
upgrades.

- Put at risk the entire universal system that keeps rural phone service
affordable.

- Dramatically increase basic telephone rates.

- Cause the loss of high-skill, high-wage union jobs.

- Reduce accountability for quality and service.

The letter was also signed by the Center for Independent Living of Central Pennsylvania, MAAC Project of San Diego, Making Choices for Independent Living, Inc. of Baltimore, Maryland, the Maryland Association of the Deaf, the National Black Chamber of Commerce, the National Association of Commissions for Women, the New Jersey Association of the Deaf, the Pennsylvania Citizens Consumer Council, the Pennsylvania Society for the Advancement of the Deaf, Inc., the United Seniors Health Council (formerly United Seniors Health Cooperative) and the Universal Service Alliance of California.

Copies are available by calling APT at 202-263-2971.