Ameritech local exchange competitors warned Ill. Commerce Commiss...
Ameritech local exchange competitors warned Ill. Commerce Commission (ICC) that Ameritech local customers could face another service quality meltdown this summer as result of what it charged was company’s systematic underspending on its infrastructure for last decade, a claim…
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Ameritech disputed. CLEC-supported Ill. Coalition for Competitive Telecom Thurs. released AT&T- commissioned study by Chicago telecom consultant Gregory Busch that reviewed Ameritech’s ARMIS reports to FCC 1988-1999. Report said that for most of 1990s, after Ameritech moved to relaxed price cap regulation, company on average spent 25% less per line on capital improvements than Bell companies in other regions. Busch’s report said data indicated Ameritech management took advantage of lenient regulation by shortchanging network to bolster profit margins. “SBC bought a system with serious problems, and years of neglect cannot be corrected in a few months. The system will fail again once service demand increases,” Busch said. He said demand for new and relocated wholesale and retail phone service in Ill. rises in peak moving season in spring and summer months. Ameritech Pres. Edward Meuller, who came on board after SBC-Ameritech merger, said company had kept its promises to improve service and met ICC service standards in Jan. He didn’t comment on company’s investment history before acquisition by SBC, saying carrier was focused on continued improvements in customer service to ensure no repeat of last summer’s installation and repair delays. ICC Chmn. Richard Mathias said agency had concerns about Ameritech’s capacity to handle service orders and repairs and had sent questionnaire asking about role that condition of infrastructure played in company’s service performance. “We'll be watching their performance closely,” he said. ICC recently penalized Ameritech $34 million for its retail service failures in 2000 and Tues. fined company $1.2 million for failing to provide adequate wholesale service in last part of 2000, bringing total fines for wholesale service performance failures in 2000 to $6.3 million Sustained service quality improvement is critical for Ameritech now for 2 reasons: (1) Ill. legislature is considering bill (SB- 134) to replace expiring Ill. regulatory law with new statute that would deregulate Ameritech’s business services and minimally regulate residential service. (2) Ameritech recently advised ICC that it planned to ask this summer for agency’s endorsement of Sec. 271 interLATA long distance entry.