SBC Ameritech Comments on PUCO Alternative Regulation Order
Columbus, Ohio, December 6, 2001
SBC Ameritech today commented on the Public Utilities Commission of Ohio (PUCO) order that updated alternative regulation rules for Ohio's telecommunications companies. The company is currently reviewing the order and may file an application for rehearing with the PUCO in the coming weeks.
"We are pleased the Commission has unanimously taken this important step and has recognized that customers have choice and competition is a reality. It shows the benefits of the Federal Telecommunications Act of 1996 are being realized here in Ohio," said James C. Smith, president, SBC Ameritech Ohio. "It is of paramount importance to have in place forward-looking rules that recognize and support ever-increasing competition."
"Alternative regulation will enable our state to attract quality jobs for our citizens and to better compete for economic growth," said Jeff Rechenbach, vice president of the Communications Workers of America's (CWA) district four. "We believe members of the CWA will benefit, as will all Ohioans, from forward-looking regulation."
While pleased the Commission acted, SBC Ameritech expressed some initial concerns about the order.
"We need to study the order in detail, but we are concerned with some of the changes the Commission has made to the staff proposal, including its treatment of non-basic local services," said Smith.
Approximately a year ago, the legislature passed Senate Bill 235 (Sub. S. B. 235), which took into account the evolving competitive communications landscape. In overwhelmingly approving Sub. S. B. 235, the Ohio General Assembly updated the definition of basic local exchange service as the primary access line, local usage, and emergency services, among others, and determined that these services should continue to be regulated under more traditional methods.
"Based on our initial review, we are disappointed the PUCO has included regulatory restrictions on services that are clearly not basic - like Caller ID, Call Waiting, and second and third access lines," said Smith. "By subjecting non-basic services to heavier regulatory obligations, the Commission has reduced the incentive to make the substantial investments a company has to commit to in order to be regulated under the new rules."
The new rules build on the alternative regulation plan, Advantage Ohio, written in 1993 and under which Ameritech has operated since 1995. The Advantage Ohio plan is effective through January 9, 2003.
"The previous alternative regulation plan, Advantage Ohio, has clearly been good for Ohio consumers," said Smith. "It has resulted in rate reductions and price caps for residential and business customers; encouraged infrastructure investments and the Lifeline program; prompted more innovation and improved services; and enhanced the competitive communications marketplace."
Sub S.B. 235 replaced a provision of Ohio law that had been adopted in 1989. That legislation set the stage for regulators to modify outdated regulations for all other services and establish a regulatory framework for Ohio's telecommunications companies to invest in new technologies to upgrade the state's communications infrastructure.
SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its subsidiaries' trusted brands - Southwestern Bell, Ameritech, Pacific Bell, Nevada Bell, SNET and Sterling Commerce - and world-class network, SBC and its affiliated companies provide a full range of voice, data, networking and e-business services, including local and long-distance voice, high-speed Internet access and data transport, voice and data network integration, software and process integration, Web site and application hosting, e-marketplace development, paging and messaging, as well as cable and satellite television, and directory advertising and publishing. In the United States, the company currently has 61.3 million access lines and is undertaking a national expansion program under SBC Telecom that will bring SBC service to new U.S. markets. SBC has a 60 percent equity interest in Cingular Wireless, its joint venture with BellSouth, which serves more than 20 million wireless customers. Internationally, SBC has telecommunications investments in 28 countries and has annual revenues that rank it among the largest Fortune 500 companies.
