Verizon Says EarthLink Too Late to Slam XO Buy in New York
EarthLink is too late to object in New York to Verizon’s proposed buy of XO Communications, Verizon protested Tuesday. EarthLink condemned the deal at the New York Public Service Commission Monday, the due date for reply comments. But the company…
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should have filed the opposition June 6, when initial comments were due, Verizon said in a letter to New York PSC Secretary Kathleen Burgess. EarthLink didn’t even “acknowledge its tardiness,” the big telco said. “The Commission should not reward EarthLink’s studied contempt for the requirements of the Notice and for the Secretary’s Office. Its filing should be stricken from the record of this proceeding.” In the reply comments, EarthLink said the PSC “should determine that the proposed transaction poses a serious threat to competition and consumer welfare.” It would eliminate XO as a competitor in retail and wholesale wireline business data services in Verizon’s New York ILEC region, and as an “important wholesale provider of BDS inputs, including central office collocations and transport services,” the ISP said. EarthLink buys these services from XO, and fears prices will rise if the deal goes forward, it said. “These harms would ultimately be passed on to EarthLink’s retail and wholesale customers in New York in the form of higher prices and reduced innovation.” EarthLink Senior Vice President-Public Policy Chris Murray dismissed Verizon's protest about tardiness. "Maybe it's because the parties are concerned that the competitive harms here are real, that they've gone out of their way to prevent information from reaching decision makers," he emailed Wednesday. Windstream also opposed Verizon/XO in New York (see 1606130035).