To: Stephen B. Temple who wrote (1840 ) 11/10/1998 7:22:00 AM From: Stephen B. Temple Read Replies (2) | Respond to of 3178
OT> Sprint Joins Consumer, Business Groups to Oppose SBC/Ameritech Merger Before Wisconsin PSC November 10, 1998 KANSAS CITY, Mo., Nov. 9 /PRNewswire/ An unprecedented alliance of consumer, business and telecommunications industry representatives today jointly petitioned the Wisconsin Public Service Commission (WPSC) to investigate and review the proposed merger of Ameritech and SBC Communications, calling the merger "an ill-conceived alliance intended to recreate the Bell system monopoly over telecommunications services. " The petitioners, which include Sprint, the Citizens' Utility Board, the Wisconsin Merchants Federation, the American Association of Retired Persons, and the Wisconsin chapter of the National Federation of Independent Businesses each have different missions, but are unanimous in their concern that the proposed merger will negatively impact Wisconsin consumers and businesses, they said. The petitioners called for the WPSC to assert its general supervisory jurisdiction and conduct an investigation and hearings that would provide clear evidence of the merger's impact on competition in Wisconsin local phone service. For consumers, the merger would eliminate SBC as a potential choice in local phone service in Wisconsin, and would give the merged company greater ability to keep other competitors out, the petition said. The loss of competition would reduce the incentive to lower rates, would stifle new products and services that consumers and businesses want, and likely would result in a reduction in service quality, petitioners told the commission. "If you don't like paying high prices for call waiting or caller ID today -- too bad. There won't be anyone else offering Wisconsin customers local service at a better price if this merger goes through and eliminates competition," said Ellen D'Amato, Sprint Vice President for State External Affairs. "The SBC/Ameritech merger -- along with the proposed Bell Atlantic/GTE merger -- should be of dire concern to everyone in America because we could be faced with two giant corporations owning more than two thirds of the nation's telephone lines. Essentially, Americans would be at the mercy of a Bell East and a Bell West monopoly," she added. The states of Illinois, Ohio and Indiana are investigating and will hold hearings on the SBC/Ameritech merger, which would be the largest merger of utility companies in the history of the United States. The Wisconsin petition noted that former Pacific Bell customers faced significant service problems and an increase in rates after that company was bought by SBC. Service quality complaints have at least doubled since the Pacific Bell purchase, and anti-consumer behavior and abusive marketing practices by SBC have been reported, the petition said. Given that the Wisconsin commission already has taken action against Ameritech because of service problems, and the record of SBC service problems, "this commission should review the proposed merger to ensure that consumers are protected adequately," the petition said. The merger also would threaten the long distance competition that has benefited consumers and reduced rates for years, petitioners told the commission. Long distance companies almost always must rely on a connection through the local phone company to serve their customers. In the case of Sprint, the merged company would control the territory where more than 45 percent of Sprint long distance calls begin and end, giving the merged company even more incentive and opportunity to restrict competition in long distance as well as local service. "These companies claim their enormous size is necessary to compete, and that big companies are more innovative than smaller companies. But the truth is that competition, not size, is what drives innovation and consumer service, " D'Amato said. In its investigation, the commission should specifically examine the companies' claims of financial and other benefits from the merger, the allocation of such benefits to Wisconsin consumers, the impact on regulating decision makers in a distant state and the potential for "price squeeze" behavior against competitors, the petition said. She added, "We believe that, faced with the facts, the Wisconsin Public Service Commission will determine that this merger will have many significant adverse effects on Wisconsin consumers and businesses by reducing competition, diversity and consumer choice in local telephone service. We call on the commission to investigate the proposal fully." Sprint is a global communications company -- at the forefront in integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is the leader in advanced data communications services. Sprint has $15 billion in annual revenues and serves more than 16 million business and residential customers. SOURCE Sprint