To: drmorgan who wrote (19238 ) 8/18/1999 1:28:00 PM From: Scrapps Respond to of 22053
You didn't make the list, but you have someone who agrees with you....AT&T Issues Wake-Up Call for Communities Served by U S WEST Complaints Filed in Five States Call for Immediate Action to Stem Serious Service Problems Threatening Western States DENVER, Aug. 18 /PRNewswire/ -- AT&T (NYSE: T - news) today filed formal complaints with regulators in five states in an attempt to end U S WEST's ''out of control'' service problems. AT&T officials said the company took these extraordinary steps because U S WEST's deteriorating service is putting customers and communities at risk and is seriously harming AT&T's ability to operate in the region. Complaints were filed in Arizona, Colorado, Minnesota, New Mexico and Washington. ''U S WEST provides its customers with the poorest service in the country and it's rapidly getting worse,'' said Frank Ianna, AT&T's network services president and chief quality officer. ''These filings are unprecedented in AT&T's history -- this is not the way we like to do business. But we exhausted every other option on behalf of our customers and got nowhere with U S WEST. We have no other choice.'' As the monopoly provider of local service in its territory, U S WEST controls the access long-distance companies like AT&T have to business and residential customers. U S WEST is required by law to provide the facilities necessary for that access -- and in a timely manner -- but has intentionally failed to meet this obligation, according to AT&T's complaints. The filings charge that U S WEST is: deliberately failing to adequately invest in its facilities; refusing to build needed facilities; illegally favoring itself and its affiliates when it does make network investments; and falling far below the quality standards the companies agreed upon. As a result, customers have had to endure substandard service, with little hope for improvements. With an annual tab of nearly $1 billion, AT&T is U S WEST's largest access customer. According to the complaints, the company's conduct has made it impossible for AT&T to provide timely, quality services to many customers in U S WEST's 14-state service area. AT&T uses the same quality standards for local telephone companies throughout the country. Ianna noted that compared to its peers U S WEST has long ranked at the bottom, but prior to 1993 it often performed at or near the top. ''Such a dramatic drop from best-in-class to worst-in-class suggests U S WEST's problems are internally driven, not the result of industry difficulties, growth or economic circumstances,'' he said. ''As one of the top earning corporations in the country, U S WEST clearly has the resources to resolve its service problems but has chosen not to. The question we have to ask is why.'' The answer may be found in a telephone survey of Chamber of Commerce executives concerning telephone service. The AT&T-commissioned survey was conducted in Arizona, Colorado, Minnesota, New Mexico and Washington by Keith Fredericks Research, an opinion and market research firm. The survey found that 62 percent of chamber members say that poor service by U S WEST (as reported in a J.D. Power survey) has an impact on the overall economic health of their state. U S WEST customers in this survey agreed that a failure to ''plan well enough'' (62 percent) and a business strategy of ''serving large customers'' (56 percent) explained U S WEST's J.D. Power poor satisfaction rating. AT&T and industry experts have voiced concern that in its quest to provide non-regulated, high-speed data services to high-end corporate clients, U S WEST may be siphoning funds from its regulated business -- local telephone service. It's also alleged that U S WEST is failing to make needed network investments throughout the region in favor of more profitable data customers. ''In essence, U S WEST is cherry-picking its own customers,'' said Charlotte Field, AT&T's regional vice president for local services and access management. ''It's discriminating against an entire class of customers, creating communities of telecommunications 'haves' and 'have-nots,' with the 'have-nots' footing the bill. Regulators and lawmakers need to look at this carefully and seriously explore whether U S WEST is discriminating against individuals, communities and competitors with its investment and service practices. It's a bad situation that's only going to get worse if nothing's done.'' Field added that the pending merger with Qwest could greatly worsen the problems. AT&T officials said the company is confident that regulators will respond favorably to its petitions. ''By ignoring the law and refusing to invest in its facilities as required, US West has failed customers miserably,'' said Field. ''That cannot be allowed to continue.'' SOURCE: AT&T