March 1, 2002 -- "We are disappointed in this outcome and feel that the House voted rashly," said Robert A. Curtis, Senior Vice President, Strategic Planning for Z-Tel. "This bill is not about promoting broadband deployment it is about deregulating the incumbent local telephone companies and shutting the door on competition."

According to Curtis, H.R. 1542 would, if enacted, significantly roll back the network access and unbundling obligations of the incumbent local phone companies to the extent those network facilities could be used to provide high-speed data services. Z-Tel relies upon such access and unbundling to provide its innovative telecommunications services to over 250,000 customers nationwide.

"This bill, if approved, would only benefit a tiny handful of dominant, local phone companies and their cronies," said Thomas M. Koutsky, Vice President, Law and Public Policy for Z-Tel. "We are just at the dawn of mass market competition brought by companies like Z-Tel in the wake of the Telecommunications Act of 1996, and consumers are finally beginning to realize that they have a choice in telecom services. It is no surprise that the incumbents would try and slam the door shut on an open market at its earliest stages and attempt to block any further inroads to competition."
"We are encouraged by the fact that it appears there is far from any clear consensus in Congress on this issue, and most important, we anticipate that this proposed legislation is highly unlikely to make any progress in the Senate," Curtis added. "Our expectations are evidenced by Chairman Hollings's strong statement on the floor of the Senate this week in which he stated the bill was ‘blasphemy' and a ‘monopoly grab'."

Koutsky commented, "Where the value of unbundling has been examined completely and seriously, policymakers have determined that open markets and unbundling are in the public interest. For example, after months of negotiations in New York, the Public Service Commission ratified an agreement with Verizon that expands the availability of unbundling. It is ironic that on this very same day, parliamentary maneuvers were used to shut down any serious and open debate on the consumer and competitive impact of Tauzin-Dingell. Z-Tel will continue to aggressively advocate against the bill's passage, and we are hopeful that in the end, Congress will heed the voice of American consumers and business owners."

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