Verizon’s local competitors in Pa. assailed its ad campaign inten...
Verizon’s local competitors in Pa. assailed its ad campaign intended to persuade influential entities that proposed structural separation of its operations would be contrary to public interest. Meanwhile, 2 Pa. state senators called on PUC to fine Verizon $5…
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million for flouting agency’s order to propose detailed separation plan. Verizon’s statewide ads claim structural separation would cost company $1 billion, threaten thousands of jobs, increase phone bills, jeopardize network reliability and exclude Pa. from new information economy. CompTel said Verizon ad claims were “unsubstantiated” and campaign was intended to preserve carrier’s “stranglehold” in local market. Competitor-supported Pennsylvanians for Local Competition urged PUC and lawmakers to ignore what they charged were Verizon’s “scare tactics” and proceed with separation of its wholesale and retail operations to ensure development of truly effective local competition. State Sens. Roger Madigan and Mary Jo White, both southeastern Pa. Republicans, urged $5 million PUC fine for Verizon’s “deliberate failure” to propose by Feb. comprehensive structural separation plan that complied with PUC directives. Verizon instead proposed alternative to separate just Internet access and high-speed digital data services. Verizon said there was no legal basis for fine lawmakers seek. Spokesman said carrier “has complied fully with all PUC directives and requirements in this case.” Madigan and White, frequent Verizon critics, have participated in PUC structural separation case for last 2 years. Third lawmaker involved in proceeding, state Sen. Vincent Fumo (D-Philadelphia), agreed to data-only separation plan in Dec., providing Verizon bankrolled legislature-controlled state economic development fund. In related matter, Verizon called AT&T petition to N.J. Board of Public Utilities for Verizon structural separation in that state (CD Feb 28 p7) “a desperate attempt” to keep telco out of interLATA long distance market. Verizon said separation in N.J. would cost customers $300 million annually due to inefficiencies and duplications.