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Contact Bruce Kushnick at (212-777-5418)
Bruce@newnetworks.com
FOR IMMEDIATE RELEASE
September 27th, 2000
STILL CLOSED TO COMPETITION IN NEW YORK AND TEXAS
New York City--- New Networks Institute (NNI) reported today in a survey of Internet service providers (ISPs) that the telephone networks of the Bell Operating Companies in New York and Texas are not open to competitors as required by the 1996 Telecommunications Act. It also reported that Bell Company services to business customers and competitors had declined since they had been permitted to enter the long distance market in the two states.
NNI surveyed ISPs in Texas and New York to determine whether the local telephone networks had been unbundled and ISPs and competitive local exchange companies had non-discriminatory access to these network elements and services. NNI concluded that the Bells are delivering sub-standard customer services to DSL customers, competitive local exchange companies, and ISPs with the effect of stifling competition and hampering deployment of broadband networks and services.
Under the terms of the 1996 Act, the Bell monopolies were required to open their local monopoly telephone networks to competitors and to interconnect with them before the FCC allowed them to offer long distance services. "NNI's previous survey in spring 2000 showed that their networks and service standards did not meet the Act's requirements then," said Bruce Kushnick, president of the Institute. "ISPs' reports on the current situation demonstrate that they are still flagrantly neglecting their legal obligations under Section. 271," he continued.
The 'Chain-of-pain" --- Besides the harm to ISPs and CLECs, residential and small business customers are suffering from the Bell companies' violation of this section, Kushnick pointed out. "This is not only a competitive problem, but a serious consumer issue since the Bells' sole objective is to enter the long-distance business rather than to invest in and improve their network service quality. Indeed, quality and service for all Bell Company customers have been severely compromised in this rush to enter long distance."
ISPs reported uniformly in the report that their experiences with the Bell Companies has been poor, with missed calls, misplaced orders, predatory prices, discriminatory treatment, and shoddy workmanship. Seventy-three percent of the ISPs polled said that "service is terrible" and that they encountered continuous problems that cost them money and time, while another 24 percent said they encountered lots of problems, for an aggregate of 97 percent.
The full report is available at http://www.newnetworks.com. For more information, please contact Bruce Kushnick at 212-777-5418 or bruce@newnetworks.com