Incumbents and CLECs are drawing battle lines over bill in Mich. ...
Incumbents and CLECs are drawing battle lines over bill in Mich. legislature (HB-4764) that would require full structural separation of Ameritech and Verizon by Jan. 2003. Bill is before House Commerce Committee. Ameritech disparaged bill as mere “temper tantrum”…
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by certain segments of CLEC industry that it said were afraid to compete. Carrier said competition statistics publicized by CLEC backers of bill were obsolete data from 1999. Verizon called structural separation “a solution waiting for a problem,” especially since it said there was “no evidence” that it would promote competition or resolve any other telecom issues while plenty of evidence existed that it would produce market confusion, threaten jobs, increase costs. Verizon called structural separation “a discredited idea” rejected by economists, FCC, other states. Telcos said they doubted bill would get serious consideration in year-round Mich. legislature. Meanwhile, Mich. CLECs began new ad campaign to drum up support for HB-4764, proclaiming Mich. “needs local competition now” and structural separation is only way to get competition. CLECs said bill would give them “fighting chance” to compete against Ameritech by eliminating inherent conflict of interest when company served both its own retail customers and those of CLECs. CLECs said it would take structural separation to bring about Telecom Act’s promise of open, fully competitive local markets. Issue also has emerged via proposed legislation or CLEC petitions in Fla., Ill., Md., N.J., Pa. and Va., but to date no state has adopted it. Pa. came closest, but PUC stopped short of requiring Verizon to create independent wholesale and retail business units, instead ordering functional separation via separate wholesale and retail divisions within current Pa. operating company.