WTNH News Channel 8 / News / 1999

	New Bill Proposed to Speed Local Phone Competition (Hartford-AP) _ In 1994, a law was passed that promised consumers new telephone services at lower prices, by ending local telephone monopolies and allowing competition. But little of that competition has come to state residents, so another law is proposed to get the process rolling. National telephone companies who say they want to compete in Connecticut say the bill is just what is needed to step up competition for residential telephone service. The state's main telephone company, Southern New England Telecommunications, said the bill would unfairly hobble their business and could hurt the very consumers it aims to help. Sprint and AT&T said the 1994 law gives SNET too many advantages for there to be true competition. Sprint's Cary Hinton said the company looked seriously at providing local service in Connecticut but determined "it wasn't a viable business opportunity for us." Under the 1994 law, SNET is offering competitors access to their telephone lines at a 17.8%, not enough of a profit margin for competitors, Hinton said. AT&T said in written testimony to the committee that the bill is needed to provide access to the network at lower rates. Rep. Demetrios Giannaros, chairman of the Energy and Technology Committee, noted that despite the 1994 law, SNET serves 95% of the local telephone customers in the state. "That, to me at least, is what I would call a pure monopoly situation," said Giannaros, D-Farmington. SNET, however, said the companies could compete for residential customers if they wanted. For example, cable television companies could offer telephone service through their cable lines, to reach about 60% of SNET's customers. Instead, some companies have chosen to offer only local service to businesses, where they can make a bigger profit, the New Haven based company said. "They built networks to go after the most profitable end of the business they can," said Tom Morgan, president and chief executive of SNET. Morgan said the bill would prohibit SNET from issuing a single bill for multiple services. He also opposed establishment of a balloting system that would begin no later than July 1, 2001. Under the bill, customers who do not choose their local telephone system by ballot would be assigned a new company. Morgan said this system would mean the state would switch a customer's telephone service without his knowledge, and the new charge could be higher than what the customer is paying now. The Department of Public Utility Control ordered a balloting system in 1997, but it has been delayed several times because of technical issues. Today's News Page. WTNH Home Page. ©1999 WTNH/WTNH-DT A LIN station.

New Bill Proposed to Speed Local Phone Competition
(Hartford-AP) _ In 1994, a law was passed that promised consumers new telephone services at lower prices, by ending local telephone monopolies and allowing competition.

But little of that competition has come to state residents, so another law is proposed to get the process rolling.

National telephone companies who say they want to compete in Connecticut say the bill is just what is needed to step up competition for residential telephone service.

The state's main telephone company, Southern New England Telecommunications, said the bill would unfairly hobble their business and could hurt the very consumers it aims to help.

Sprint and AT&T said the 1994 law gives SNET too many advantages for there to be true competition.

Sprint's Cary Hinton said the company looked seriously at providing local service in Connecticut but determined "it wasn't a viable business opportunity for us."

Under the 1994 law, SNET is offering competitors access to their telephone lines at a 17.8%, not enough of a profit margin for competitors, Hinton said.

AT&T said in written testimony to the committee that the bill is needed to provide access to the network at lower rates.

Rep. Demetrios Giannaros, chairman of the Energy and Technology Committee, noted that despite the 1994 law, SNET serves 95% of the local telephone customers in the state.

"That, to me at least, is what I would call a pure monopoly situation," said Giannaros, D-Farmington.

SNET, however, said the companies could compete for residential customers if they wanted. For example, cable television companies could offer telephone service through their cable lines, to reach about 60% of SNET's customers.

Instead, some companies have chosen to offer only local service to businesses, where they can make a bigger profit, the New Haven based company said.

"They built networks to go after the most profitable end of the business they can," said Tom Morgan, president and chief executive of SNET.

Morgan said the bill would prohibit SNET from issuing a single bill for multiple services.

He also opposed establishment of a balloting system that would begin no later than July 1, 2001. Under the bill, customers who do not choose their local telephone system by ballot would be assigned a new company.

Morgan said this system would mean the state would switch a customer's telephone service without his knowledge, and the new charge could be higher than what the customer is paying now.

The Department of Public Utility Control ordered a balloting system in 1997, but it has been delayed several times because of technical issues.

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