AT&T and MCI WorldCom Challenged to Adopt Pennsylvania's Local Competition Plan

Strategic Insights -

Harrisburg, Pa., August 17 - Bell Atlantic, led by CEO Daniel J. Whelan, has issued a direct challenge to AT&T and MCI WorldCom, urging them to end their delaying tactics and implement the local competition plan in Pennsylvania that they have been offering in New York. Under this plan, the biggest long-distance companies would be able to offer local residential telephone service in Pennsylvania, mirroring the conditions they have adopted in neighboring New York.

Key Takeaways:

  • AT&T and MCI WorldCom have been accused of using regulatory maneuvers and distorted advertising to delay full choice for local and long-distance service in Pennsylvania.
  • Bell Atlantic is offering competitors an innovative plan comparable to one in New York, where AT&T and MCI WorldCom have begun competing for local customers.
  • The proposed plan would cut prices for competitors who want to link to Bell Atlantic's network by more than 16 percent and reduce long-distance companies' access fees by $250 million.
  • Rural customers would benefit from a new funding mechanism to ensure affordable local phone service.
  • Bell Atlantic has completed an intense, third-party test of the computer systems competitors use to order service from Bell Atlantic - New York.
  • AT&T has announced that it has begun competing with Bell Atlantic for New Yorkers' home phone service, while MCI WorldCom has offered local phone service in New York for six months, garnering 138,000 residential customers.

Statistics:

  • 138,000: The number of residential customers MCI WorldCom has accumulated in New York since offering local phone service six months ago.
  • $250 million: The reduction in access fees long-distance companies would see under Bell Atlantic's proposed plan.
  • 16%: The percentage by which prices for competitors who want to link to Bell Atlantic's network would be cut under the proposed plan.
  • 43 million: The number of telephone access lines owned by Bell Atlantic companies worldwide.
  • 10 million: The number of wireless customers served by Bell Atlantic companies worldwide.

Sources:

  • AT&T (NYSE: T)
  • MCI WorldCom (Nasdaq: WCOM)
  • Bell Atlantic (NYSE: BEL)
  • Bell Atlantic News Center on the World Wide Web (http://www.ba.com)