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NEW NETWORKS INSTITUTE STUDY REVEALS IMPACT SINCE DIVESTITURE OF AT&T; REPORT EXPLORES DISMANTLING REGIONAL BELLS

 NEW NETWORKS INSTITUTE STUDY REVEALS IMPACT SINCE DIVESTITURE
 OF AT&T; REPORT EXPLORES DISMANTLING REGIONAL BELLS
 WASHINGTON, July 29 /PRNewswire/ -- The New Networks Institute, a telecommunications market research and analysis firm based in New York, announced today Phase One of a project called "10 Years Since Divestiture: The Future of the Information Age." Bruce Kushnick, president, New Networks Institute (NNI), announced the findings thus far "both startling and disturbing" and that Congress and the Federal Communications Commission (FCC) are making decisions about the future of telecommunications "based on incomplete and misguided information, and these decisions should be reexamined."
 The highlights of the report include:
 -- While discussions in Congress center around new freedoms for the Regional Bells, New Networks Institute thinks Congress should explore dismantling the Regional Bells.
 -- FCC statistics on local charges are woefully incomplete. Charges to consumers and businesses have increased nationwide an average of 315 percent, not 50 percent as stated by the FCC. New York City charges have increased 553 percent since 1980.
 -- The Regional Bells have changed their mandate from supplying "Universal Service at a Reasonable Price," to pursuing a strategy which first serves their investors. $11.3 billion has been spent in the last three years on foreign investments.
 -- Using their natural monopoly positions, the Regional Bells are costing telephone users $5.6 billion in charges for toll calls, while the average consumer bill shows over $125 a year in added fees and expenses.
 This is the first research to examine the impacts of divestiture on the consumer and business user and is based on actual charges and payments of telephone bills from 1980-92. Information was combined with data from over 1,600 separate documents, sources including the FCC, the Department of Justice, BellCore, National Association of Regulatory Utility Commissioners, telephone company annual reports, tariffs and product literature.
 According to the study, the lack of competition has led to the prices for local service increasing 315 percent nationally, with little changes in the overall quality of customer services. Because of competition, long distance prices have decreased at least 60 percent.
 "10 Years Since Divestiture: The Future of the Information Age" is being delivered on a sponsorship basis in four distinct reports. The final report is a scenario for the future of telecommunications in America, including: 1) The Plan for Divestiture, 2) The Creation of a New Agency for Telecommunications, 3) Creating a Universal Fiber Network, and 4) New Network Services Based on Area Codes "500," "600," and (Star) "100."
 New Networks Institute was founded in 1992 by Kushnick, a telecommunications expert and former president of Strategic Telemedia, a telecommunications market research firm. Based in New York, NNI's mission is to explore the impact of divestiture and to create an environment where telephone companies and users can develop new communications ideas and solutions. NNI conducts multi-sponsor market analysis projects and forums.
 -0- 7/29/92
 /NOTE: For an overview of project findings, call the contact below./
 /CONTACT: Sonya Gabay, 301-309-9404, or Bruce Kushnick, 212-837-7867, both for New Networks Institute/ CO: New Networks Institute ST: District of Columbia IN: TLS SU:


IH -- DC014 -- 4688 07/29/92 14:27 EDT
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Date:Jul 29, 1992
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