To: Frank A. Coluccio who wrote (1991 ) 11/27/1998 4:16:00 PM From: Stephen B. Temple Respond to of 3178
US West does have a point> Lower Colorado Phone Prices Being Stalled By Anti-Competitive Tactics of MCI Worldcom, ICG Netcom, Nextlink and McLeod USA Competitors Seek To Derail Pact Among U S WEST, the Colorado PUC and Office of <> November 27, 1998 U S WEST (NYSE: USW) today criticized delaying tactics being used by competitors to stall an agreement worked out between the local phone company, the Colorado Public Utilities Commission, and the Office of Consumer Counsel. The agreement would enable U S WEST to lower prices more quickly, increase investments in Colorado, and meet service quality standards. In arguments to the PUC, MCI Worldcom, ICG Netcom, Nextlink and McLeod USA threw roadblocks in front of the deal, essentially delaying any possible approval of the accord until next year. "This is a step back for Colorado phone customers," said Kevin Smith, vice president, Colorado, U S WEST. "This agreement would give U S WEST the freedom to respond more quickly to competition by lowering prices for customers. MCI Worldcom and ICG Netcom are trying to scuttle it not for the customers' interest, but for their own." "MCI Worldcom just reported huge earnings. For them to try to restrict U S WEST's opportunity to better serve customers in this state is the ultimate hypocrisy," said Smith. "It's proof yet again that these companies are not interested in true competition. They just want to raid Denver's lucrative business market and take their profits out of state, with no regard for regular phone customers in the rest of the state." With the agreement, U S WEST would be given the same opportunity to lower prices and compete for customers. At the same time, the company would commit to capping basic residential and business rates, effectively freezing them going forward. In fact, under the agreement, phone rates in many cases could only go down. As part of the agreement, U S WEST also would invest more than $40 million in network improvements for Colorado's telecommunications network. These improvements would be made throughout the state, whereas competitors like MCI Worldcom and ICG Netcom make investments only in lucrative business centers while refusing to invest in residential, rural, and economically disadvantaged areas. Contrary to claims by MCI Worldcom, ICG Netcom and others, the agreement also calls for a significant amount of regulatory oversight of U S WEST prices and service quality -- significantly more regulation than other Colorado competitors face today. "This agreement would be a win-win for U S WEST and Colorado phone customers," said Smith. "Attempts by MCI Worldcom, ICG Netcom and others to shut it down only shows how hollow their calls for competition really are." SOURCE U S WEST