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For Immediate Release
April 28, 1999

White Testifies at Hearing on Legislation to Bring Local Telephone Choice, Technology to All of Pennsylvania

Harrisburg – Legislation sponsored by Sen. Mary Jo White (R-21) and others to bring local telephone competition and new communications technology to all of Pennsylvania was the subject of a state Senate committee hearing today.

The bills were introduced last month following Bell Atlantic Pennsylvania’s unwillingness to compromise on a plan that would bring competition and a modern communications network to all of Pennsylvania, including rural areas.

Bell is Pennsylvania’s largest local telephone service provider.

The bills would block Bell’s proposed merger with GTE (the state’s second-largest local telephone service provider) because of the monopoly it would create; require large local telephone companies to separate their wholesale and retail operations; and ensure that Bell and other local carriers invest in a broadband communications network, using profits generated by the state’s easing of regulations in 1993.

White, who previously testified against the Bell/GTE merger at a public hearing in Oil City, said Bell was wrong to call the bills "anti-business."

"These bills could conceivably be seen as anti-business only when viewed from the perspective of a particular company possessing monopoly power," said White in her testimony to the committee today.

As a committee member, she also had the opportunity to question Bell and GTE executives about what the merger would mean for the 21st Senatorial District and the rest of rural Pennsylvania.

The senator noted that the only residents at the Oil City hearing who supported the merger were those who thought it would bring improved technology and services – from something as simple as "call-waiting" to video-conferencing available via a broadband network.

However, neither Bell Atlantic Pennsylvania President and CEO Daniel Whelan nor GTE Assistant Vice President John Dudley would guarantee any improvements after the merger.

"You want us to agree that this merger is in the best interest of the public without telling us the services you’ll offer," White said.

Also testifying was state Public Utility Commission member David Rolka, Pennsylvania Consumer Advocate Irwin Popowski, a rural telephone customer from Sayre, Pa., and others.

The bills, which are also prime sponsored by Sen. Roger Madigan (R-Bradford) and Sen. Vincent Fumo (D-Philadelphia), are co-sponsored by about half of the members of Senate, indicating extremely strong support.

White noted that the state Telecommunications Act of 1993 was intended to speed deployment of a broadband communications network to all of Pennsylvania, including rural areas.

Broadband technology allows for the fast transmission of a high volume of data, including video. It could greatly aid schools, hospitals and businesses – as well as residents – in rural areas.

However, although the act allowed Bell and other carriers to earn extraordinarily high profits, the companies have not lived up to their agreement to provide broadband services to customers throughout the state, the senator noted.

She said the bills "create an environment where all users of telecommunications services have choices, access to services and the pressure on prices that can only come from real competition."

Adding: "That is pro-business, pro-consumer and pro-Pennsylvania economy."

CONTACT: Leigh Ramsey (717) 787-9684