CEOs of 54 CLECs and related technology companies sent letter to ...

of 1996 that it said had prompted competitors to enter local marketplace. “The FCC, however, is now considering adopting one-sided policies that could squelch competition among local broadband providers and recreate a monopoly for broadband services,” letter said. It was signed by members of ALTS, CompTel, including top executives of NewSouth Communications, U.S. LEC, McLeodUSA, Allegiance Telecom, Covad Communications, Time Warner Telecom. Letter said pending proposals at FCC could “deny competitors the opportunity to interconnect with the Bell company networks. As a result, the telecommunications services of 19 million consumers who currently receive service from competitors could be disconnected and many consumers would encounter significant rate increases.” Letter estimated that 77,000 high-tech employees could lose their jobs. Rule changes aren’t needed to spur RBOC broadband investment, CLECs told White House. “Under the existing rules, Bell companies have continued to invest, expand their use of fiber and rapidly deploy DSL.” Executives said CLEC market share increased in 2001 to 10% of local market from 8.5%. “While competitors have made great progress, the market is not yet fully competitive,” letter said. “We ask that you give the free market and fair competition a chance to work with the existing policies.” Letter said challenge now wasn’t broadband supply, it was lack of demand, which CEOs said Administration had “rightfully” started to champion. “We urge you to refrain from picking broadband winners and losers,” executives told Bush. “Instead we encourage you to focus on the demand side of the equation while letting us compete fairly in the broadband marketplace under the existing policies.”