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XO Communications CEO Carl Grivner Urges State Regulators to Push
Thorough Review of the SBC-AT&T and Verizon-MCI Mergers
Address to NARUC Cites Market Concentration, Higher Prices and Less Choice for
Consumers and Businesses Resulting from Mergers
AUSTIN, Texas, July 25 /PRNewswire-FirstCall/ -- XO Communications, Inc. CEO
Carl J. Grivner today urged state regulatory utility commissioners to join with
the competitive telecommunications industry and consumer advocacy groups in
seeking to block the proposed mergers of SBC-AT&T and Verizon-MCI, unless the
merging parties offer and implement remedies that will ameliorate the
substantial competitive harms that have been shown to occur.
Addressing state policymakers attending this week's meeting of the National
Association of Regulatory Utility Commissioners (NARUC) in Austin, Grivner
labeled arguments favoring the mergers a "house of cards" that will collapse
under close scrutiny by regulators.
Grivner echoed concerns raised in a New York Public Service Commission staff
white paper released earlier this month.
"The New York PSC staff warns that the Verizon-MCI merger will significantly
increase market concentration in New York, reducing competitive choices and
leading to higher prices," Grivner said. "In their view, these mergers can be
accepted only if they are reined in by strong counter-measures that include
divestitures, strict price controls, quality controls and contract performance
measurements. Other members of NARUC should heed these words."
Grivner termed the Baby Bells' pro-merger arguments a blatant inversion of the
facts. "It is disingenuous for SBC and Verizon to claim that the elimination
of their two largest competitors, AT&T and MCI, will somehow increase
competition, and it is misleading to say the lessening of competitive pressure
will have no effect on pricing. These proposed mergers will create intense
market concentration for the Bells, and deal a 'losing hand' to customers in
the form of higher prices and fewer competitive choices."
Grivner cited research projecting the dramatic increase in market concentration
following approval of the mergers:
* In Chicago, SBC's market share will rise from 83.2% to 88%
* In Cleveland, SBC's market share will go from 88.3% to 90%
* In New York, Verizon's market share will increase from 84.3% to 86.3%
* In Philadelphia, Verizon's market share will increase from 91.7% to
92.9%
The full text of Carl Grivner's speech is available at
http://www.allianceforcompetition.com/.
About XO Communications
XO Communications (OTC:XOCM.OB) (BULLETIN BOARD: XOCM.OB) is a leading
provider of national and local telecommunications services to businesses, large
enterprises and telecommunications companies. XO offers a complete portfolio of
services, including local and long distance voice, dedicated Internet access,
private networking, data transport, and Web hosting services as well as bundled
voice and Internet solutions. XO provides these services over an advanced,
national facilities-based IP network and serves more than 70 metropolitan
markets across the United States. For more information, visit
http://www.xo.com/.
DATASOURCE: XO Communications, Inc.
CONTACT: Chad Couser of XO Communications, +1-703-547-2746, or
Web site: http://www.xo.com/
http://www.allianceforcompetition.com/