February 12, 2002 -- Citing breach of the interconnection agreement between it and Verizon Delaware, AT&T filed a petition asking the Public Service Commission of Delaware (PSC) to direct Verizon to pay it more than $2 million.

"The interconnection agreement signed by AT&T and Verizon requires each company to pay the other for completing its calls," said Mark Keffer, AT&T's Chief Regulatory Counsel. "Verizon has blatantly ignored this agreement, and over the past three years has accumulated over $2 million in unpaid charges. It's time for Verizon to pay its bill."

The Telecommunications Act of 1996, passed by Congress to foster local telephone competition, requires each local telephone company to pay call termination costs, or reciprocal compensation, when its customers call a customer served by another carrier. For example, when a customer of AT&T calls a customer of Verizon, AT&T must compensate for Verizon's cost to complete the call. The same holds true in reverse when a Verizon customer calls a customer served by AT&T.

The PSC-approved agreement between AT&T and Verizon-Delaware began in 1998. AT&T is asking the PSC to find Verizon in breach of agreement; to enforce the agreement by ordering Verizon to pay $2,047,170, plus accrued interest; and to order Verizon to comply with its ongoing obligations to pay reciprocal compensation.

"Verizon's refusal to pay is yet another attempt to stifle local competition," said Keffer. "AT&T has honored the Act and its agreement to the PSC. Verizon hasn't."

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