AT&T told Pa. PUC that it would cost Verizon only $41 million to ...
AT&T told Pa. PUC that it would cost Verizon only $41 million to implement full structural separation of its retail and wholesale business operations and asked agency to hold hearings to review its evidence supporting claim. AT&T said study…
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it commissioned by economist Lee Selwyn reviewed operating cost data Verizon supplied in other PUC cases to come up with $41 million figure. Verizon had said structural separation would cost $1 billion to implement. PUC was expected to decide on separation plan by end of March, but AT&T urged it to admit study findings into record “to assist you [PUC] in reaching conclusions regarding the appropriate implementation plan for structural separation.” Verizon urged agency to dismiss AT&T’s “unverifiable, eleventh- hour, duct-tape study.” Verizon said AT&T in other proceedings testified its own local service startup costs would run to hundreds of millions of dollars, so AT&T’s claim that Verizon could do equivalent creation of new business unit for mere $41 million “defies common sense.”