FCC asked for comments by March 19 on Verizon request to count it...
FCC asked for comments by March 19 on Verizon request to count its investment in defunct Northpoint Communications toward requirement that it invest in out-of-region services. Out-of-region investment was one of conditions placed on Bell Atlantic-GTE merger, which formed…
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Verizon. Verizon told FCC in March 7 letter that it thought it should get credit for part of NorthPoint investment that met out-of-region requirement, even though it ultimately gained no value from that investment. “Verizon made this investment in good faith with the expectation that the investment would result in the acquisition of customers outside the Verizon operating area,” company told agency in letter. Merger condition required that Verizon spend money, and it did, letter said: “That the final merger [with NorthPoint] was never completed does not alter the fact of Verizon’s payment.” FCC said merger condition required that Verizon spend at least $500 million within 36 months of deal’s close “to provide services, including resale, that compete with traditional local telecommunications services offered by incumbent local exchange carriers or to provide advanced services to the mass market… outside the Bell Atlantic/GTE service areas.” ALTS said it was “shocked by Verizon’s audacious attempt to back out of merger commitments.” ALTS Pres. John Windhausen said Verizon’s argument was “patently absurd,” especially since carrier never used any of those assets to offer out-of-region service.