IP: BABY BELL BREAKUP MOVEMENT GAINS GROUND

[David Farber <dave () farber net>]

> From: Dewayne Hendricks <dewayne () warpspeed com>
>
> BABY BELL BREAKUP MOVEMENT GAINS GROUND
> Issue: Competition
>
> The Baby Bell local phone companies are increasingly criticized for alleged
> abuse of the local phone markets. The idea of a Bell breakup has become a
> rallying point for rivals and critics of the giants, who allege that Verizon
> Communications, SBC Communications, BellSouth and Qwest Communications
> International have abused their control of the local telephone networks. A
> bill introduced by Reps. Reps. Billy Tauzin, (R-La.) and John Dingell
> (D-Mich.) in Congress last week added fuel to the fire. While few expect the
> bill to actually pass, its introduction is shining a light on the ongoing
> criticism of some of the most powerful players in the communications
> business. "The reality is that (the big local phone companies) still have a
> monopoly on the wire into the home," said Gene Kimmelman, chief
> telecommunications analyst for the Consumers Union. Consumer groups have
> lobbied for more competition at the local level. But the breakup movement is
> not a grassroots phenomenon: in the states where the issue has come up in
> the past two years, AT&T has helped spearhead and fund the drive. The major
> difference now is that the movement is gaining more political momentum and
> credibility. Much of the political movement now is, in effect, based on
> recognition that the Telecommunications Act of 1996 has failed in part.
> Maureen Flood, vice president of the Competitive Telecommunications
> Association, a lobbying group that represents AT&T and alternative local
> phone companies said "We're taking this very seriously. There are a number
> of architects of the Telecommunications Act who are really frustrated" with
> the progress of local phone network competition.
>
> [SOURCE: CNET News.com, AUTHOR: John Borland]
> <http://news.cnet.com/news/0-1004-200-6818658.html?tag=tp_pr>



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