Press Release

 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
Harrisburg, PA 17105

Petition of Bell Atlantic-Pennsylvania, Inc. : P-00971307

for a Determination of whether a Telecommunications Service (business)

is Competitive Under Chapter 30 of the :

Public Utility Code :

Investigation Into Re: Bell Atlantic- : P-00971293

Pennsylvania’s Entry into In-region :

IntraLATA toll Services Under Chapter :

30 of the Public Utility Code :

Investigation into Bell Atlantic- : I-00980075

Pennsylvania’s Entry into In-region : M-00960840

InterLATA Services under Section : P-00961137

271 of the Telecommunications Act :

of 1996 and Statement of Generally :

Available Terms :

Generic Investigation into Intrastate : I-00960066

Access Charge Reform :

Formal Investigation into Universal : I-00940035

Service and Universal Service Funding : L-00950105

Mechanism :

Application of MFS Intelenet of : A-310203F0002

Pennsylvania, Inc. for Approval to :

Operate as a Local Exchange :

Telecommunications Company in the :

Areas Served by the Bell Telephone :

Company of Pennsylvania within the :

Philadelphia and Pittsburgh LATAS, :

and to Establish Specific Policies and :

Requirements for the Interconnection :

of Competing Local Exchange Networks :

Rulemaking Re: Updating and Revising : L-00940095

Existing Filing Requirement Regulations : L-00940095F0002

at 52 Pa. Code § § 53.52-53.53 Relating :

to Telecommunications Utilities :

JOINT STATEMENT OF CHAIRMAN JOHN M. QUAIN

AND COMMISSIONER DAVID W. ROLKA

    At the Pennsylvania Telephone Association annual meeting on June 16, 1998, Governor Ridge re-affirmed his commitment to the development and deployment of telecommunications technology throughout the Commonwealth, and to renewed efforts to bring the benefits of competition to local telephone markets. The Governor stated, "Pennsylvania should be out front when it comes to telecommunications policies and innovations-- a leader among states and a competitor among nations." The Governor’s commitment can be seen as in direct relation to the "benchmark" hearing on local telephone competition held before this Commission on March 31, 1998. At that conference, it was stated that an incumbent local exchange carrier ("ILEC") continues to hold approximately 98% of the local market share while competitive local exchange carriers ("CLECs") have only a 2% share of the local market. This imbalance is attributable to a number of factors, and the Commission has moved to address those, both in a re-opening of the MFS investigation docket, and through an informal ILEC/CLEC working group aimed at resolving operational issues through dialogue rather than through complaint and litigation.

    But we must do more.

    From our perspective, competition is essential to the development and provision of utility services. While Pennsylvania continues to make progress in the area of telephone industry modernization, a number of complex, inter-related proceedings must be resolved if we are to see real competition among local exchange carriers.

    In an effort to achieve our desired goal-- actual telephone competition for all Pennsylvania consumers-- as quickly as possible, and to avoid prolonged and costly litigation, the effects of which are ultimately passed along to ratepayers, a forum for an integrated resolution of these complex issues is being offered. We propose to invite the parties and commenters in the above-captioned proceedings to attend a global settlement conference to be convened by the Commissioners. This is a monumental effort not previously attempted by any other state, but Pennsylvania has demonstrated its commitment to competition in the electric industry and is extending that commitment to the telecommunications industry.

    It is contemplated that the settlement will encompass the following proceedings: Bell Atlantic-PA’s Petition to determine whether intraLATA toll service is competitive under Chap