February 26, 2002 -- Michigan Alliance for Competitive Telecommunications (MiACT) reported that Michigan will never have real local telephone choices or competitive high-speed Internet access if Congress passes H.R. 1542, up for consideration in the U.S. House of Representatives on Feb. 27, U.S. Rep. Lynn Rivers, consumer groups and business organizations said today.

At a news conference held at the offices of KMC Telecom, a fiber-based integrated communications provider in Ann Arbor, Rivers warned that consumers face a future with no choices, high rates, poor service and lack of innovation should Congress pass the legislation, known as the Tauzin-Dingell bill. Reps. Billy Tauzin of Louisiana and John Dingell of Michigan sponsor it.

"H.R. 1542 will prevent states and the federal government from protecting consumers and promoting competition in telecommunications, for both plain old telephone service and for high speed Internet service," Rivers said. "This bill is good for four big monopoly telecommunications mega-conglomerates, and bad for everyone else."

Bill Lockwood, City Director for KMC Telecom, said the bill would cripple small telecommunications competitor efforts to compete effectively with giant phone monopolies such as SBC Ameritech. "The Tauzin-Dingell bill will hurt competitive carriers and jeopardize thousands of jobs. We have invested many millions of dollars in high-speed broadband networks, but we need to purchase links from the incumbent local phone company to connect customers to our high-speed network. If this bill passes, the SBC Ameritech can deny those connections to competitors. If we can't connect to potential customers, residential and business customers won't be able to shop around for better service at lower prices. The monopolies win and the customer pays. It's as simple as that."

Rick Gamber of the Michigan Consumer Federation compared the effort to deregulate monopoly phone companies with the Enron disaster. "You would think that Congress would learn that we shouldn't let giant corporations buy their way into public policies we know will hurt families. Consumers must have real competition, or real regulation, for vital telecommunications services. This bill kills both -- and it will mean higher rates and worse service."

At the news conference, a letter from the Michigan Public Service Commission opposing the legislation was passed out. Signed by all three commissioners, who are appointed by Gov. John Engler, the letter says the bill "would, in our view, eviscerate years of effort that we and others have expended to bring competition to the local telephone market in Michigan."

"The bill would prohibit the competitors of the major telephone companies from using their network to provide broadband service, and threaten more than 16 million telephone customers with immediate disconnection of service," the letter states. "If the bill becomes law, we will be unable to assure high quality service in broadband and, due to the fact that the same lines are used for voice service, for that service as well."

Rivers said she intends to speak against the bill when it comes to the floor of the House on Wednesday.

MiACT is a coalition whose membership includes customer groups such as the Michigan Consumer Federation, the Small Business Association of Michigan and other business associations; long distance companies such as AT&T and Sprint; alternative competitive carrier; and both large and small companies seeking customer choice in telecommunications services.

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