For Immediate Release
Friday, December 14th, 2001
Bruce Kushnick, survey@newnetworks.com
To Read Statements From the ISPs
SURVEY OF AMERICA'S INTERNET SERVICE PROVIDERS (ISPs) REVEALS COMPANIES BEING HARMED, BLOCKED FROM OFFERING BROADBAND.
New York --- New Networks Institute (NNI) released the results of its 3rd Nationwide Annual Survey of Internet Service Providers (ISPs). Across the US, independent ISPs claim they are being frozen out of DSL and cannot compete on an equal footing with the local Bell monopolies. This is directly harming America's DSL and Internet customers.
"About half of all Internet Providers have gone out of business, and if the current situation of control by the Bell companies over these independent competitors is not Immediately fixed in the next 12 months, the millions of customers who are served by these independent companies will be harmed," stated Bruce Kushnick, Executive Director of New Networks Institute.
To use the words of one of the ISPs: "SWB (SBC) is using their monopolistic powers in the telecom industry to remove competition in the Internet industry. They are using heavy handed tactics to force ISPs to sign one-sided contracts. They are forcing us out of the DSL market."
Some of the Reports Findings:
The Bells received failing grades in all areas of customer services, from installations to processing orders. And ISPs believe the networks are NOT open to competition, even in states where the Bells already offer long distance (It is a prerequisite for the networks to be "open" to competitors before they enter long distance.)
- 4.1 (out of a possible 10=excellent) is the average score ISPs rated their local phone companies for overall performance --- a failing grade.
- 3.5 (out of a possible 10=excellent) is the average score ISPs rated their local Bell companies for their DSL provisioning--- a failing grade.
- 80% Believe that service is "Not OK" or "Terrible" ----there are continuous problems and this cost their company money and time.
- 84% Believe that the phone networks are essentially closed. The Bells should
- not be (or have been) allowed into long distance.
- 77% Believe that the FCC or Public Service Commissions are "Not Helpful, Not Effective" (or worse),
The regulators, from the FCC to the state commissions, also received failing grades, with 77% of ISPs stating that the regulators are not enforcing the laws.
However, the situation is a great deal worse for customers. Almost half of all ISPs (43%) do not offer DSL and the primary reason is the Bells' treatment. Many ISPs have had to drop offering DSL because of the Bell's treatment of their customers
One ISP states: "We tried (to offer DSL) but stopped because of installation delays, circuits wired wrong and circuits that did work but were constantly going down. Bell was killing our business and giving us a bad reputation by saying the problem was ours. We had to pull the plug and asked all customers to find an alternative."
CONCLUSIONS:
- The Bells are freezing out competitors, both Competitive Local Exchange Companies (CLECs) and ISPs, from competing in DSL/Broadband and Internet Services. This directly harms America's Digital Future.
- There is a "Chain-of-Pain" for customers. Every time an ISP can't get an order through or offer a competitive service, the Customer is directly harmed.
- These anticompetitive issues are long standing over the last five years. They have been continuous and effect the entire Bell controlled networks across the country. If the FCC and states do not step in and enforce the laws, the entire competitive ISP and CLEC markets are at risk and customers are the losers.
Solutions:
1) The FCC and States must stop talking and start investigating these valid claims of illegal and anti-competitive acts.
2) The Broadband Bill of Rights: New Networks Institute, with the help of other industry members, has created "The Broadband Bill of Rights" to address many of the issues. Over 700 customers have co-signed this important proposed piece of legislation. See: http://www.newnetworks.com/broadbandbill.htm
3) Congress should not pass any new law, including the proposed Bell funded "Tauzin-Dingell" bill until there has been an investigation and solution to the Bells' harmful treatment of ISPs and CLECs.
4) No Bell Long Distance Application should be considered by the FCC before there is a full investigation and restitution made to competitors and ISPs who have documented Bell illegal acts. (The Bells are supposedly restricted from entering long distance until the networks are "open" to competition. The data clearly shows that the networks are not open today, even in the states where the Bells have already been allowed into long distance---- NY, TX, MA, PA, OK, KS, among others, and the Bells have filed in NJ, CA, and GA among others.)
For more information contact Bruce Kushnick at 212-777-5418.