Press Release

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today extended the benefits of local telephone competition to rural areas of the state by removing a barrier that previously prevented competitors from serving these areas.

The Commission voted 4-1, with Commissioner Aaron Wilson Jr. dissenting, not to renew a provision that allowed 28 rural telephone companies to deny interconnection agreements with competing telecommunications companies.  (Commissioner Wilson’s Statement)

“Local telephone competition is currently thriving in Pennsylvania’s urban regions, where consumers can shop for telephone service,” PUC Chairman Glen R. Thomas said.  “Rural customers also should be able to enjoy these same benefits.”

The Federal Telecommunications Act of 1996 said local phone companies must allow competitors to interconnect to their networks and to lease parts of the networks, which competitors then resell to customers. The PUC approves interconnection agreements between companies.

However, the federal act gave state utility commissions authority to grant rural phone companies suspensions from interconnection obligations.  The Pennsylvania PUC subsequently gave the 28 rural phone companies a two-year suspension from the interconnection obligations, which became effective in July 1997. The PUC then granted three additional, one-year suspensions to the companies. The five-year period was meant to give rural telephone companies the opportunity to modernize their networks, expand into new markets and prepare for interconnection obligations.

 In June, the 28 rural companies petitioned the PUC for an additional three-year extension to the interconnection obligation suspension. The PUC denied the extension today, paving the way for the possibility of competition in these rural areas.   However, before a competitor can start soliciting customers in these areas, it must request an interconnection agreement with the rural phone company.  The request must then be approved by the PUC, which determines if the request is technically feasible, follows the Federal Telecommunications Act of 1996 and is not economically burdensome to the rural company.

The rural telephone companies that filed the petition include:
• Armstrong Telephone Company – North;
• Armstrong Telephone Company – Pennsylvania;
• The Bentleyville Telephone Company;
• Buffalo Valley Telephone Company;
• Citizens Telephone Company of Kecksburg;
• Conestoga Telephone and Telegraph Company;
• D&E Telephone Company;
• Frontier Communications of Breezewood;
• Frontier Communications of Canton;
• Frontier Communications of Lakewood;
• Frontier Communications of Oswayo River;
• Frontier Communications of Pennsylvania;
• Hickory Telephone Company;
• Ironton Telephone Company
• Lackawaxen Telephone Company;
• Laurel Highlands Telephone Company;
• Marianna & Scenery Hill Telephone Company;
• The North-Eastern Pennsylvania Telephone Company;
• North Penn Telephone Company;
• North Pittsburgh Telephone Company;
• Palmerton Telephone Company;
• Pennsylvania Telephone Company;
• Pymatuning Independent Telephone Company;
• South Canaan Telephone Company;
• TDS TELECOM/Mahanoy and Mahantango Telephone Company;
• TDS TELECOM/Sugar Valley.
• Venus Telephone Company; and
• Yukon-Waltz Telephone Company.

In November the PUC and the Council for Utility Choice launched a first-in-the-nation Web-based shopping information guide, "PA TeleChoice," to empower consumers to view and compare offers by local telephone providers.  PA TeleChoice is a Web-based local telephone choice consumer shopping information tool, which consumers can access by logging onto www.utilitychoice.org. It empowers consumers to type in their area codes and exchanges (the next three numbers), and view and compare local telephone offers and services either side by side or in a list.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. 

For recent news releases, or more information about the PUC, visit our Internet homepage at http://puc.paonline.com.

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