[9771] in Commercialization & Privatization of the Internet
BA - Lift Restrictions
daemon@ATHENA.MIT.EDU (Eric Rabe)
Fri Jan 21 01:11:09 1994
Date: Thu, 20 Jan 1994 16:37:42 -0500 (EST)
From: Eric Rabe <rabe@ba.com>
Reply-To: Eric Rabe <rabe@ba.com>
To: TELXCH-L <TELXCH-L@ALBNYDH2.BITNET>,
Bell Atlantic filed papers today asking the Justice Department for relief
under the MFJ Accord. Below is the news release. Information
regarding the Bell Atlantic/TCI/Liberty merger is available by anonymous
FTP at <ba.com>.
FOR IMMEDIATE RELEASE CONTACT: PAUL MILLER
January 20, 1994 804-772-1460
Eric Rabe <rabe@ba.com>
****************************************************
Bell Atlantic Calls for Lifting Restrictions on
Out-of-Region Long Distance and Satellite Transport;
Prominent Economists Support Request.
****************************************************
ARLINGTON, VA -- Bell Atlantic today asked the U.S. Department
of Justice to support elimination of long distance restrictions in order
to promote competition. Five of this country's most eminent economists,
in a strong show of support for the merger, filed affidavits supporting
the request, which came in connection with Bell Atlantic's planned
merger with Tele-Communications, Inc. (TCI) and Liberty Media Corp.
(Liberty).
Bell Atlantic explained that the relief it asked for -- to
provide long distance telephone service outside its region and to
deliver programming by satellite nationwide -- will let the merged
companies pursue plans to compete aggressively with other telephone
companies outside Bell Atlantic's region and with existing cable
companies inside its region. Regional Bell telephone companies are
prohibited from furnishing services between LATA's (or local calling
areas) under terms of the Modification of Final Judgment (MFJ) that
broke up the Bell System on Jan. 1, 1984.
"The rationale for the long distance ban was that Bell
companies might use their so-called local `bottleneck' to impede
competition in long distance," said James R. Young, Vice President and
General Counsel, "but where we have no supposed `bottleneck' -- such as
outside our region or for services delivered by satellite -- there is no
conceivable justification for the restriction."
The economists agreed, and explained that there is no
possibility, substantial or otherwise, that Bell Atlantic could impede
competition if its request is granted. In fact, they unanimously agreed
that the planned merger and the relief sought in connection with the
merger would strongly promote competition.
The economists filing affidavits include Alfred E. Kahn, the
country's foremost authority on regulatory economics; Gary S. Becker,
winner of the 1992 Nobel Prize in economics; Robert W. Crandall, from
the prestigious Brookings Institute; Robert G. Harris, a well-known
telecommunications specialist from the University of California at
Berkeley; and William E. Taylor, an expert on the economics of the
telecommunications industry.
Bell Atlantic is asking the Justice Department for a swift
recommendation of approval to allow it to move forward toward completion
of its merger later this year.
"It is ironic," said Young, "while Bell Atlantic must wait
for a waiver to be approved, foreign telephone companies are already
beginning to provide long distance telephone and satellite delivery
services on U.S. soil." British Telecom now owns an interest in MCI,
which provides long distance and is preparing to enter the local
telephone business in the U.S. Similarly, Bell Canada plans to provide
local telephone service through its ownership interest in the cable
systems of Jones Intercable.
Cable TV companies, like TCI and Liberty, have never operated
under the restrictions imposed on the Bell companies by the MFJ. As a
result, a number of the cable TV properties owned by TCI and Liberty
cross existing LATA boundaries, and the companies utilize satellite
transmission to deliver programming. The waiver Bell Atlantic is
seeking would resolve decree issues relating to the merger.
Bell Atlantic is the parent company of the Bell Atlantic
Telephone Companies of Delaware, the District of Columbia, Maryland,
Pennsylvania, New Jersey, Virginia and West Virginia. These companies
provide a full array of local exchange telecommunications services in the
mid-Atlantic region.
Bell Atlantic also owns one of the nation's largest cellular
carriers, as well as companies that provide software, systems integration,
hardware and software service and support, and financial services. In
addition, Bell Atlantic International offers network services and
consulting to telephone authorities throughout the world. It also owns
significant interests in Telecom Corp. of New Zealand and Gruppo Iusacell,
the second largest telecommunications company in Mexico.
###
Eric Rabe Voice: (703) 794-3036 Fax: (703) 974-0591
Bell Atlantic | Internet: rabe@ba.com
