Office of the Ohio Consumers' Counsel

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Ohio consumer advocate calls for residential customer benefits in Verizon-MCI merger

Columbus, Ohio - September 30, 2005 - Two large telephone companies with many Ohio customers propose to merge without demonstrating any benefits for residential consumers as required by state law, the Office of the Ohio Consumers' Counsel (OCC) said. The OCC, along with other consumer groups, will file a brief later today at the Public Utilities Commission of Ohio (PUCO) and recommend that the proposed Verizon-MCI merger be rejected unless customer benefits are included as conditions.

"As proposed, the Verizon-MCI merger is not in residential customers' best interest. Consumers will see fewer local and long-distance choices, and job cuts could have a detrimental impact on the quality of their telephone service," said Janine Migden-Ostrander, Consumers' Counsel. "The merger should be rejected unless benefits are introduced that would make customers better off being served by a combined company."

Ohio law requires the merger to promote the public interest. The OCC believes that to comply with the law, the PUCO should deny the merger or establish several conditions in order to approve it, including:

Pricing

Ensure that some of the cost savings resulting from the merger will benefit residential consumers, preferably through lower rates.
Increase the discount through the Lifeline assistance program to ensure local service is more affordable to low-income customers.Consumer protections
Initiate a Consumer Bill of Rights for Verizon's local, long-distance, broadband and cellular services. The Bill of Rights would provide enhanced consumer protections, including rules that require clear and concise bills and prohibit misleading marketing practices.
Impose stronger penalties if Verizon violates Ohio's existing telephone consumer protections, known as the Minimum Telephone Service Standards.

Access to services

Require that Verizon introduce broadband in its Ohio communities where it is currently unavailable.
Develop a community voice mail program to assist consumers in temporary need, including victims of domestic violence and those without permanent housing who are seeking work.

Telephone choices

Require that Verizon allow competitors to lease its local telephone network, including the portion needed to provide broadband, at reasonable rates.
Allow customers to purchase Verizon's broadband product without also buying the company's local telephone service. Currently, Verizon requires its Ohio customers to purchase its local service in order to receive broadband service.
Require Verizon to offer competitive local telephone service to residential customers in several of the largest cities served by each of Ohio's other major local telephone providers: SBC, Sprint, ALLTEL and Cincinnati Bell.

Prior to merging, Verizon and MCI are required to gain approval from regulators in several states and at the Federal Communications Commission (FCC). Regulators in many states, including Ohio, and at the FCC have the power to impose conditions in order to grant merger approval.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.