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For Immediate Release
August 3, 2005
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White Urges PUC to
Reject Verizon-MCI Merger
Says rural
communities shortchanged; Sept. 1 hearing planned.
Harrisburg – State Sen. Mary Jo White (R-21) is
urging the state Public Utility Commission to reject
the proposed merger between Verizon Communication
Inc. and MCI Inc., arguing that it is not in the
public interest and could negatively impact her
district.
The senator has submitted testimony to the PUC
and will appear at a Sept. 1 public hearing on the
matter. The hearing will be held at the University
Center at Edinboro University, beginning at 10 a.m.
"Many of my constituents in Clarion, Erie,
Forest, Venango and Warren counties are customers of
Verizon or Verizon North. In many areas, especially
those served by Verizon North, they receive poor
telephone service and no broadband or high-speed
Internet connection," said White. "Rural
Pennsylvanians already have few options for
telephone service. Eliminating a potential
competitor will only make it less likely that
Verizon will improve its service to my district and
other rural areas in Pennsylvania."
If the PUC approves the merger, White said, it
should require a binding commitment from Verizon-MCI
to accelerate broadband deployment, aggressively
compete for residential customers, and retain
current levels of employment and service.
Published reports indicate the merger could
result in the reduction of 7,000 jobs. Verizon
employs 1,200 in the Erie area.
The senator stressed that the lack of broadband
and high-speed Internet service – and the high cost
of Verizon's wireline connections – is not just a
matter of inconvenience. In the case of UPMC
Northwest Hospital in Seneca, the inability to
secure broadband service makes it impossible to
utilize state-of-the-art diagnostic equipment.
"UPMC Northwest has a
state-of-the-art digital imaging system that allows
physicians to view digital X-rays and MRIs. However,
very few physicians can use the technology because
there is no local broadband available," said White.
"Physicians located in Pittsburgh and other areas
can access such images for their patients, but our
local physicians cannot. The PUC cannot allow such a
blatant digital divide to go unchecked."
There is no competition in
Pennsylvania's rural communities for basic telephone
service, White noted. Mergers have left residential
customers with virtually no choices, particularly
since cable options and Voice Over Internet Protocol
(VOIP) competition do not exist in most rural areas
where cellular service is spotty.
"Much of my district was served
by GTE before its merger with Bell Atlantic created
Verizon North. Since that merger, basic telephone
service has not improved. The PUC should not permit
further deterioration of service by accepting this
new merger without explicit requirements," said
White. "It appears Verizon-MCI plan to invest
significant capital to serve large customers such as
government entities, big businesses and urban area
residents at the expense of rural customers. Under
state law, Verizon and MCI have the burden of proof
to show that the proposed merger 'is in the public
interest.' The companies have their work cut out for
them in meeting this standard. This merger may be
good for Wall Street but not for Main Street, PA."
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