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story category PA Supreme Court Allows 2005 Verizon-MCI Merger to Stand
Anti-competition argument put to rest
(old news - 11:16AM Saturday Dec 29 2007)
tags: legal · competition · business · telco · Verizon Wireless Broadband
Back in 2005, a Pennsylvania court approved the merger between Verizon and MCI. Then, at the beginning of 2007, that original decision was reversed when an appeals court found that the merger would be anti-competitive. That decision has now been reversed by the Pennsylvania Supreme Court and the merger will be allowed to move forward.

The reasoning behind the court’s approval is that they say the public will benefit from the merger in the long run.
“ ‘The sum and substance of the commission decision is that the combined company with its strong resources, enhanced infrastructure and increased operating efficiencies will benefit the public in the long term in ways that are as meaningful as short-term rate concessions,’ Justice Thomas G. Saylor wrote for the unanimous majority.”
The belief behind this decision is that the market will regulate itself and the merger won’t do any damage to competition in the area after an initial period of adjustment is over.

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Forums » PA Supreme Court Allows 2005 Verizon-MCI Merger to Stand
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Dogfather
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Too bad

the court couldn't get back some of the $2,100,000,000 PA paid Verizon for fiber that never happened.

TKJunkMail
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Re: Too bad

said by Dogfather See Profile :

the court couldn't get back some of the $2,100,000,000 PA paid Verizon for fiber that never happened.
You mean the mythical $2B that Teletruth continually claims was paid out to Bell of PA and never was.

pnh102
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Re: Too bad

said by TKJunkMail See Profile :

You mean the mythical $2B that Teletruth continually claims was paid out to Bell of PA and never was.
Don't forget how "Teletruth" confuses ratepayers with taxpayers.
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4 edits

Re: Too bad

Uh, ratepayers don't provide (fund) additional tax breaks targeted at a single corporation. Taxpayers do.

Verizon got the tax breaks that no other corporation got because they negotiated that sweet deregulation deal in exchange for fiber deployment that never happened. Meanwhile Verizon got their billions and taxpayers didn't get crap.

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Re: Too bad

said by Dogfather See Profile :

Uh, ratepayers don't provide (fund) additional tax breaks targeted at a single corporation. Taxpayers do.

Verizon got the tax breaks that no other corporation got because they negotiated that sweet deregulation deal in exchange for fiber deployment that never happened. Meanwhile Verizon got their billions and taxpayers didn't get crap.
1st of all, Verizon got nothing - it was Bell of PA. Second, Bell of PA laid the fiber they promised - backbone fiber. They never promised FTTH.
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Dogfather
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4 edits

Re: Too bad

Incorrect. Read the original agreement (Chapter 30). Broadband had been defined in the petition as providing 45Mb service* to ACCESS lines, the connection between the end user and the CO, with a minimum statutory level of 1.544Mb (symmetric) for data services, within 5 days of the customer calling.

Verizon later claimed (and still claims) that ADSL met/meets the 1.5Mb data service requirement even though it isn't symmetrical and is only with a Cu loop under 12K Cu feet.

These speed, service and timeline requirements were written into the law. Now Verizon uses the term High Speed in their "we've met the Chap 30 requirements" claims because they aren't living up to the Chapter 30 definition of "broadband" which bundled in the video bandwidth for the larger access line requirement than just the internet access portion.

Again, they committed to providing within 5 days from the customer request date this 45Mb hookup for video with a min. of 1.5Mb for internet services to

20% of it's access lines by 1998
50% by 2004
and 100% by 2015.

I guess that Verizon - er - BA at the time didn't think it would be an issue because they planned on competing in the cable market and would use a good portion of the 45Mb for video service just as AT&T is doing today with U-Verse. Soon after doing the deal, their desire to compete in the video market died and with it the 45Mb to everyone's home.

And if can you missed it, BA became part of Verizon. Verizon assumes BA assets and liabilities and on their PA pages clearly acknowledge that they live under the deployment requirements of Chap 30 from 1993.
--
* The Bell Telephone Company of Pennsylvania's Petition and Plan for Alternative Form of Regulation Under Chapter 30, Docket No P-009350715, Alternative Regulation Plan dated 10/1/93

pnh102
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Re: Too bad

said by Dogfather See Profile :

Again, they committed to providing within 5 days from the customer request date this 45Mb hookup for video with a min. of 1.5Mb for internet services to

20% of it's access lines by 1998
50% by 2004
and 100% by 2015.
I don't recall hearing that any customer who asked for such service was denied it. I can understand if Verizon screwed this up for maybe a handful of customers, but do you have proof that Verizon denied a large number of customers this service after said customers asked for (and presumably paid for) it?
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3 edits

Re: Too bad

Are you making the claim that never in history has a PA customer asked for say, 3Mb DSL and was denied it because of Cu loop limitations or they were told that they weren't DSL serviceable?

Anything less than 45Mb access line (which no one other than FiOS customers have) AND anything less than 1.5Mb symmetrical HSI doesn't meet the agreement.

The agreement wasn't about T3 availability. It was for residential deployment of high bandwidth access line infrastructure, just like U-Verse and FiOS. 45Mb for video services and a minimum 1.5Mb for HSI.

Bell stated in this PR »newscenter.verizon.com/press-rel···29607541 Bell speaks about their new deployment of FTTP services in PA and who the suppliers would be.

And when Verizon finally got around do doing FiOS, they did it elsewhere first, like Texas.

pnh102
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Re: Too bad

said by Dogfather See Profile :

Are you making the claim that never in history has a PA customer asked for say, 3Mb DSL and was denied it because of Cu loop limitations or they were told that they weren't DSL serviceable?
Where did I mention DSL in my original post?

The agreement, as you pointed out, states that Bell Atlantic was required to provide the service to anyone who asked for it within 5 days. I am asking you if you have evidence that customers asked for this service, presumably paid for it, and were denied this service. If this is widespread, then Bell Atlantic is guilty of violating the deal.
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3 edits

Re: Too bad

What 45Mb pipe do they currently provide video services on other than FiOS? They violated the deal by not deploying the promised 45Mb access lines. They violated the deal by not making available symmetric service on 1/2 the access lines. They violated the deal by not deploying digital video services over the 45Mb connection. The fact that people were told no, you can't get services that don't exist is irrelevant, no matter how many people have asked for DSL but couldn't get it, or FiOS but can't get it.

Exactly how did Verizon meet any of the following requirements?

45Mb service connection via 1/2 of all access lines by 2004
The ability to turn up video services within 5 days of a customer calling
Minimum 1.544Mb symmetric HSI to 1/2 of all access lines by 2004
The ability to turn up those symmetric lines within 5 days.

pnh102
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Re: Too bad

said by Dogfather See Profile :

What 45Mb pipe do they currently provide video services on other than FiOS?
Bell Atlantic was offering ATM access to business customers in Penna. in 1997. I know this because I worked for a business in Penna. at the time that purchased such access.

I don't remember how fast that service was, but theoretically, you could get 155Mbps out of ATM-based technology.

The way the deal you mentioned was supposed to work was to make 45Mbps service similar to T1-based service, in that Bell Atlantic had to provide it to you no matter where you were, provided you were willing to pay for the service. Just because most residential customers could not afford the cost of these services at the time doesn't mean that they would not otherwise be available to them if they could.
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2 edits

Re: Too bad

said by pnh102 See Profile :

said by Dogfather See Profile :

What 45Mb pipe do they currently provide video services on other than FiOS?
The way the deal you mentioned was supposed to work was to make 45Mbps service similar to T1-based service, in that Bell Atlantic had to provide it to you no matter where you were, provided you were willing to pay for the service. Just because most residential customers could not afford the cost of these services at the time doesn't mean that they would not otherwise be available to them if they could.
Not according to their own press release. They were planning FTTP. And the agreement stated that the 45Mb was dedicated for video services. »newscenter.verizon.com/press-rel···29607541

Sorry, no one, not even Verizon is buying that what was at the time $30,000 T-3 meets the requirements. Even Verizon is passing off ADSL as making the requirements. Funny, no mention of T-3's in their own presswork about how they're supposedly complying.

»www22.verizon.com/about/communit···dex.html

And of course they're quick to point out
said by Verizon :
Although an area may have high-speed Internet deployed, distance from the central office (CO) and other factors may affect actual availability.

pnh102
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Re: Too bad

said by Dogfather See Profile :

Not according to their own press release. They were planning FTTP. And the agreement stated that the 45Mb was dedicated for video services. »newscenter.verizon.com/press-rel···29607541
Fiber to the Pole is essentially what I have been describing. If there is FTTP, you would have the option of calling BA and having a fiber hookup installed, provided you are able to pay them for doing it.

The press release to which you link doesn't mention anything about the deal that was struck between Penna. and BA. It only mentions that BA will be upgrading services in some parts of Penna. I believe that the ATM service I referenced earlier is one of the results of these upgrades.

As for the 45Mb to be dedicated to video service, while the release does mention that BA wants to get into this business, it does not mention that 45Mb is going to be dedicated to video.
said by Dogfather See Profile :

Sorry, no one, not even Verizon is buying that what was at the time $30,000 T-3 meets the requirements. Even Verizon is passing off ADSL as making the requirements. Funny, no mention of T-3's in their own presswork about how they're supposedly complying.

»www22.verizon.com/about/communit···dex.html
Again, the original deal stated that 45Mb fiber service had to be available to someone who wanted to order and was willing to pay for the service. What you are posting does nothing to prove that Verizon is not offering fiber service to customers who are willing to pay for it.
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3 edits

Re: Too bad

-Sigh- Fiber to the pole, fiber to the premises, the same beast, and Verizon didn't deploy it as required. Even Verizon's own pages show that is the case as they try to call ADSL the qualifying connection yet the fine print say their own maps are overestimates. Verizon is not making the claim that a $30,000 per month T3 meets the requirements, as it doesn't.

I surmise you are a fan of big business and want to excuse them at every opportunity, but that complete lack of objectivity makes logical discussion with you impossible.

These clear requirements were part of the original Chapter 30 agreement. It's obvious you haven't read it. Until you have there is no point in continuing.

Curious_Dude

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I don't understand your logic. Are you saying that as a taxpayer Verizon got tax breaks but really didn't get crap?

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said by TKJunkMail See Profile :

said by Dogfather See Profile :

the court couldn't get back some of the $2,100,000,000 PA paid Verizon for fiber that never happened.
You mean the mythical $2B that Teletruth continually claims was paid out to Bell of PA and never was.
Mythical?
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2 edits

Re: Too bad

They bash teletruth, yet can't refute any of the substantiated claims made in the teletruth filing.

Teletruth's numbers are substantiated from gov't and BellSouth's financial reports.

But I guess TKJunkMail See Profile and pnh102 See Profile are more credible experts than Dr. Lee Selwyn* of M.I.T. who actually bothered to run the numbers and is beyond an expert in telecommunications regulation, economics and public policy.

*Ph.D in Management, Alfred P. Sloan School of Management, Massachusetts Institute of Technology; Master of Science in Industrial Management, MIT; B.A. with Honors in Economics, Queens College, City University of New York
satellite68

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Re: Too bad

quote:
But I guess HCT See Profile and pnh102 See Profile are more credible experts than Dr. Lee Selwyn* of M.I.T. who actually bothered to run the numbers and is beyond an expert in telecommunications regulation, economics and public policy
Since your join date is 2007-12-26, I'll go ahead and tell you that yes, indeed the two resident freemarket magpies are more credible than anyone in the Western hemisphere on any subject you could possibly conjure. I'm betting they'd one up Jesus himself if He posted here.

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1 edit

Re: Too bad

I'm certainly no expert. I just read the PA PUC docs, old items and news articles along with testimony of experts...then regurgitated them. I would be interested is seeing "substantiated" rebuttal. If they had facts directly refuting Dr. Selwyn's study or refuting the information provided in PUC filings, I'd love to see it.

I'm a fan of my Verizon service. They provide an excellent service (to me) at a great price. I would love to be proven wrong and see evidence that Verizon met these deployment obligations AND/OR didn't receive a single benefit from this agreement they made as Bell.

But just saying that Teletruth is full of shat doesn't cut it...at least IMO.
Jonbo298

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said by satellite68 See Profile :

quote:
But I guess HCT See Profile and pnh102 See Profile are more credible experts than Dr. Lee Selwyn* of M.I.T. who actually bothered to run the numbers and is beyond an expert in telecommunications regulation, economics and public policy
Since your join date is 2007-12-26, I'll go ahead and tell you that yes, indeed the two resident freemarket magpies are more credible than anyone in the Western hemisphere on any subject you could possibly conjure. I'm betting they'd one up Jesus himself if He posted here.
Date joined does not constitute level of intelligence. By your philosophy I'm much much smarter then you.

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Re: Too bad

said by Jonbo298 See Profile :

Date joined does not constitute level of intelligence. By your philosophy I'm much much smarter then you.
When did Jesus Himself join?
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Re: Too bad

Some time after justin See Profile but before Hayward See Profile

JESUS

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Leave me out of this, I'm not ready for my second go-around.

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4 edits
No, I mean the very real $2,100,000,000 that Dr. Lee L. Selwyn of M.I.T. says they got.

Are you claiming that Verizon received $0 in additonal tax breaks or anything else from PA as part of the 1994 BS/PA deal?

»Picture Perfect Deal

»www.econtech.com/library/LLS%20P···2002.pdf
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Twitch576

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i have fiber and im in PA? what are you talking about?
nasadude

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faulty reasoning

If this is the reason for allowing the merger, then the courts are more ^#^&## up than I thought:

"The belief behind this decision is that the market will regulate itself and the merger won’t do any damage to competition in the area after an initial period of adjustment is over."

To the best of my knowledge, rarely, if ever, has an industry going from more competitors to fewer competitors been good for consumers. Same thing goes with "self regulation" - how's that working out with the mortgage sector and toy manufacturers?

Then again, we do live in the era of government by the business, for the business and of the business, I just didn't realize this included the courts.
dadarkside
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AFNI Inc.

Apparently, Verizon sold all the old financial records from their takeovers to a sneaky collections group called Anderson Financials.

Last month I got a collections notice from their enforcement branch called AFNI Inc. attempting to collect on a closed Bell Atlantic telephone account from 1999. There HAD been some overdue on that account, but it WAS cleared up.

The fact that the debt WAS settled never made it from Bell South to Verizon. And AFNI Inc/Anderson Financial doesn't care.

I'm just giving a heads up to anyone who USED to do business with MCI, DO NOT pay AFNI Inc a dime. Challenge EVERYTHING they try to say.

And Verizon should be held accountable for their own unscrupulous behavior in selling old financial data to Anderson Financial.

Verizon sucks. For many many reason.
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