Phone consumers deserve the truth

Beware of front groups like Consumers’ Voice (“Maine consumers deserve choice of local phone providers,” April 15), which often have an agenda that’s not what it seems.

Consumers’ Voice purports to speak for consumers but, based on its funding and messages, this Indianapolis-based outfit should really be called “AT&T’s Voice.” At a meeting of the National Conference of State Legislatures, one of the group’s members admitted that the entire support for Consumers’ Voice comes from AT&T, one of Verizon’s major competitors.

Robert K. Johnson of Consumers’ Voice attacks Verizon and the rates it charges its wholesale telephone customers who lease portions of Verizon’s network to serve their local phone customers.

However, he fails to note that Verizon has already lowered its wholesale rates in Maine. The wholesale prices Verizon currently charges are in many cases much lower than what it costs our company to provide the service.

Lowering these prices even more would only aggravate this problem, seriously hampering our efforts to invest in our Maine telecommunications network. We would, in effect, be even further subsidizing our competitors, who invest little or nothing in this state. But, that’s exactly what Consumers’ Voice’s sponsor, AT&T, is crusading for nationwide.

Contrary to this group’s claims, local telecommunications competition is thriving in Maine. Just watch the TV ads for MCI WorldCom’s Neighborhood calling plans, or consider Time Warner, which offers phone as well as cable services.

In addition, each call made on one of the 460,000 wireless phones in Maine formerly was made on a wireline network like Verizon’s. Verizon now serves only about 55 percent of the state’s total phone lines, when wireless lines are factored in.

Cable companies and wireless providers offer consumers the choice of competing services using different technologies. And there’s also plenty of competition using traditional phone technology. However, some companies like AT&T want to compete without having to make any investments in Maine.

Instead of investing, AT&T wants to continue using Verizon’s network at below-cost prices. What’s wrong with subsidizing AT&T to compete? Plenty.

Corporate welfare for AT&T is not only bad for Verizon, it’s bad for our state. Subsidizing competition discourages investment by those who receive the handouts and by those who provide the subsidies. As investment declines, jobs are lost and Maine stands to lose its cutting edge in technical innovation.

Maine residents are hard-working people who understand there is no such thing in life as a free ride. Once AT&T realizes this basic truth, maybe it will stop lobbying and start competing.

Edward Dinan is president of Verizon in Maine.