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For Immediate Release
May 4, 1999
White: Committee Approves Telecommunications Improvement Measure
Harrisburg – Telephone companies that are profiting from a 1993 state
law would have to reinvest funds in a modernized communications network
that benefits all areas of Pennsylvania, under legislation approved today
by the Senate Consumer Protection and Professional Licensure Committee.
The measure, Senate Bill 669, was co-sponsored by Sen. Mary Jo White
(R-21) who is also a committee member.
The legislation is one of several bipartisan bills introduced by White
and others in an effort to bring consumer choice to the local telephone
market, and improved service and communications technology to rural areas.
"Present law requires that the Public Utility Commission apply a 'public
interest' standard when approving a plan. The bill makes it clear that
open competition has to be part of that finding," said White.
The senator explained that the state Telecommunications Act of 1993
was intended to speed deployment of a broadband communications network
to all areas of the commonwealth. Broadband technology makes possible distance
learning, video conferencing, and other communications tools that could
help residents, businesses, schools and hospitals.
In return for technology upgrades, the act allowed telephone companies
to earn extraordinarily high profits by easing certain regulations. However,
the companies have failed to live up to their end of the agreement, White
said.
In fact, Bell Atlantic-Pennsylvania President and CEO Daniel Whelan
recently admitted to the state Public Utility Commission that – six years
after passage of the act -- most residential customers would not find broadband
services currently offered by Bell to be practical for use.
"The PUC must review the modernization plans every 5 years and must
determine if they are being complied with," said White.
The senator said she would continue to push for passage of other bipartisan
bills to bring the benefits of telephone competition to all Pennsylvanians,
including a measure to block the merger of Bell Atlantic and GTE. The senator
has participated in public hearings on the controversial merger.
"Real local service and price improvements will only come about when
local markets are as competitive as long distance markets. A merger of
the two largest PA local phone companies moves us in the wrong direction,"
White said.
CONTACT: Leigh Ramsey (717) 787-9684
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