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White Urges PUC to Reject
Verizon-MCI Merger
Says Rural Communities
Shortchanged; Sept. 1 Hearing Planned
HARRISBURG -- State
Sen. Mary Jo White (R-21) is urging the state Public Utility
Commission to reject the proposed merger between Verizon
Communication Inc. and MCI Inc., arguing that it is not in
the public interest and could negatively impact her
district.
The senator has
submitted testimony to the PUC and will appear at a Sept. 1
public hearing on the matter. The hearing will be held at
the University Center at Edinboro University, beginning at
10 a.m.
"Many of my
constituents in Clarion, Erie, Forest, Venango and Warren
counties are customers of Verizon or Verizon North. In many
areas, especially those served by Verizon North, they
receive poor telephone service and no broadband or
high-speed Internet connection," said White. "Rural
Pennsylvanians already have few options for telephone
service. Eliminating a potential competitor will only make
it less likely that Verizon will improve its service to my
district and other rural areas in Pennsylvania."
If the PUC approves
the merger, White said, it should require a binding
commitment from Verizon-MCI to accelerate broadband
deployment, aggressively compete for residential customers,
and retain current levels of employment and service.
Published reports
indicate the merger could result in the reduction of 7,000
jobs. Verizon employs 1,200 in the Erie area.
The senator
stressed that the lack of broadband and high-speed Internet
service -- and the high cost of Verizon's wireline connections -- is not just a matter of inconvenience. In the
case of UPMC Northwest Hospital in Seneca, the inability to
secure broadband service makes it impossible to utilize
state-of-the-art diagnostic equipment.
"UPMC Northwest has
a state-of-the-art digital imaging system that allows
physicians to view digital X-rays and MRIs. However, very
few physicians can use the technology because there is no
local broadband available," said White. "Physicians located
in Pittsburgh and other areas can access such images for
their patients, but our local physicians cannot. The PUC
cannot allow such a blatant digital divide to go unchecked."
There is no
competition in Pennsylvania's rural communities for basic
telephone service, White noted. Mergers have left
residential customers with virtually no choices,
particularly since cable options and Voice Over Internet
Protocol (VOIP) competition do not exist in most rural areas
where cellular service is spotty.
"Much of my
district was served by GTE before its merger with Bell
Atlantic created Verizon North. Since that merger, basic
telephone service has not improved. The PUC should not
permit further deterioration of service by accepting this
new merger without explicit requirements," said White. "It
appears Verizon-MCI plan to invest significant capital to
serve large customers such as government entities, big
businesses and urban area residents at the expense of rural
customers. Under state law, Verizon and MCI have the burden
of proof to show that the proposed merger 'is in the public
interest.' The companies have their work cut out for them in
meeting this standard. This merger may be good for Wall
Street but not for Main Street, PA." # # # |
