It would be ‘preposterous’ for Verizon to count its short-lived N...
It would be “preposterous” for Verizon to count its short-lived NorthPoint investment toward meeting out-of- region financing requirement of Bell Atlantic-GTE merger, AT&T said in comments filed with FCC March 19. Verizon has asked FCC for permission to include…
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$150 million investment in failed DSL provider NorthPoint toward $500 million it must spend to meet one of conditions placed on Bell Atlantic-GTE merger. It’s “particularly preposterous in light of NorthPoint’s lawsuit against Verizon” for pulling out of deal with NorthPoint, AT&T said. Verizon pulled out of NorthPoint deal in Nov. 2000, citing “deterioration” of latter’s financial condition. Pointing to NorthPoint’s suit, AT&T said “far from being an investment to compete out-of-region with the local incumbent LEC, Verizon allegedly made this investment to eliminate a competitor by driving that competitor into bankruptcy.” Assn. of Communications Enterprises (ASCENT) said Verizon’s request “should be summarily dismissed” because company’s investment in NorthPoint didn’t satisfy specific requirements in BA-GTE merger order: “Whether or not made in good faith, the investment did not result in the provision of out-of-region service, out-of-region competition by Verizon against other incumbent [LECs], or the acquisition of facilities, operating support systems or equipment used to service out-of-region customers.”