Verizon Seeks Accelerated Review of Long-Distance Plan for Pennsylvania Residents

Strategic Insights -

Verizon Communications, a leading provider of telecommunications services, has earned high marks in a comprehensive test of its systems supporting local phone competition in Pennsylvania, conducted by independent auditing firm KPMG. Based on the strong results, Verizon has asked the Pennsylvania Public Utility Commission (PUC) to accelerate its review of the company's plan to offer Pennsylvanians a competitive choice for long-distance service.

The comprehensive testing demonstrated that competitors can effectively use Verizon's operating support systems (OSS), which process orders for new service and connect wires to switch customers from Verizon's local phone service to a competitor's service. KPMG tested 569 "test points" involving Verizon's OSS, finding that none of the remaining areas of "Not Complete" or "Not Satisfied" had a material adverse impact on competition.

Verizon's strong performance in the test is consistent with results in New York and Massachusetts, where the company's systems also performed well and received the full endorsement of state regulators. Verizon has asked the PUC to consider moving forward with its 100-day review period for Verizon's readiness to enter the Pennsylvania long-distance market.

Key Takeaways:

  • Verizon's systems performed strongly in a comprehensive test of their ability to support local phone competition in Pennsylvania, conducted by KPMG.
  • The testing demonstrated that competitors can effectively use Verizon's operating support systems (OSS) to process orders for new service and connect wires to switch customers from Verizon's local phone service to a competitor's service.
  • The test results are consistent with previous testing in New York and Massachusetts, where Verizon's systems also performed well and received regulatory endorsement.
  • Verizon has asked the PUC to accelerate its review of the company's plan to offer Pennsylvanians a competitive choice for long-distance service.
  • Verizon's performance on the test, coupled with data from over six months of competitors' real-world experience using its systems, will provide evidence of the company's readiness to enter the Pennsylvania long-distance market.
  • The PUC's consultation will be considered by the FCC, which will ultimately decide whether Verizon may enter Pennsylvania's long-distance market.
  • Over 80 competitors can and do rely on Verizon's systems to offer local telephone service in Pennsylvania, serving more than two million active phone numbers throughout the commonwealth.

Statistics:

  • KPMG tested 569 "test points" involving Verizon's operating support systems (OSS), finding that none of the remaining areas had a material adverse impact on competition.
  • Verizon has asked the PUC to accelerate its 100-day review period for Verizon's readiness to enter the Pennsylvania long-distance market.
  • Over six months of competitors' real-world experience using Verizon's systems demonstrate the company's ability to support local phone competition in Pennsylvania.
  • Over 80 competitors can and do rely on Verizon's systems to offer local telephone service in Pennsylvania, serving more than two million active phone numbers throughout the commonwealth.
  • Verizon Communications Inc. has over 260,000 employees and approximately $60 billion in 1999 revenues.

Sources:

  • Verizon Communications news release, November 3, 1999
  • KPMG report, draft, 641 pages