TRAC URGES FCC TO REJECT MERGER
TRAC Urges Consumers to Tell FCC To “Stop-the-Merger”
Washington, DC. -- Dirck Hargraves, TRAC’s Counsel and Board Member today at a public hearing urged the FCC to Stop-the-Merger of MCI/Worldcom and Sprint on the grounds that it would create an unregulated duopoly for residential long distance telephone service.
Speaking at a public hearing at the invitation of the Federal Communications Commission, TRAC’s spokes person focused on the need to increase choice for residential customers, not decrease it by eliminating the third largest provider of long distance service. “Sprint has been the innovator in long distance, followed by MCI. ATT cut its rates only after innovations from its competitors.” Said, Hargraves.
MCI/Worldcom has argued that technology has changed the market and there is no longer such a thing as “long distance.” In effect, they say that telephone is telephone, and includes a full basket of services from local, long distance, internet, wireless etc. TRAC acknowledged that this is the future, but the “this future is NOT now.” “Today, only consumers in New York have an array of choices from full service providers, and even in that state people are paying separately for long distance and local service.” TRAC points out.
TRAC believes the MCI/Worldcom vision of the future is just that, a vision of the future. Policy markers need to wait until that future has arrived before approving any merger based on these assumptions.
Consumers can let the FCC know that they to want to Stop-the-Merger by going to the TRAC web site, where electronic e-mails to the FCC and the Department of Justice can be sent urging rejection of the merger.
TRAC is a Washington, DC based consumer groups that has tracked long distance prices for the past 16 years. TRAC produces the TeleTipsTM Chart, the only independent source for information on long distance calling plans. TRAC is a non-profit, tax-exempt consumer organization that works to help consumers make informed decisions regarding their long distance options. TRAC also provides an internet-based long distance call comparison tool called the WebPricer on the TRAC website.
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MEDIA CONTACT:
John Breyault, TRAC, johnb@trac.org, 202-263-2943
ABOUT TRAC:
The Telecommunications Research and Action Center (TRAC), founded in 1983, is a non-profit membership organization based in Washington, DC that promotes the interests of residential telecommunications customers. TRAC staff researches telecommunications issues and publishes rate comparisons to help consumers make informed decisions regarding their long distance and local phone service options. TRAC can be found on the web at http://www.trac.org.
