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January 30, 1997 CONTACT: Bell Atlantic - Michel Daley, 202-392-1021, michel.l.daley@bell-atl.com; NYNEX - Jamie DePeau, 202-336-7825, notes.jdepeau@nynex.com Bell Atlantic and NYNEX Call on FCC to Reform Interstate Access Charges to Meet Demands of Competitive Markets WASHINGTON, D.C.--(BUSINESS WIRE)--Jan. 30, 1997--Bell Atlantic and NYNEX have called upon the Federal Communications Commission (FCC) to overhaul access charges -- the mechanism used by local telephone companies to charge long distance carriers for use of the local networks to complete long distance calls. In a joint filing made yesterday, the two companies advocated the establishment of a new market-based access rate structure that significantly lowers per minute charges to long distance companies. Under their proposal, the long distance companies would continue to pay for their use of the local telephone network through flat-rated charges. "Federal and state policymakers have consistently determined that long distance carriers should pay their fair share to support the local telephone network," said Tom Tauke, executive vice president, government affairs, NYNEX. "As the FCC attempts to reform the rate structure so that it makes sense in a competitive market, that policy should not change. Long distance carriers are trying to avoid their fair share of local network costs and to shift the total cost of maintaining the local network to local ratepayers. That's wrong. And we are urging the FCC to resist efforts to turn rate restructuring into a massive shift of network costs from the large customers of long distance carriers to the proverbial Aunt Tilley." Bell Atlantic Vice President and Associate General Counsel Edward D. Young, III said, "By asking the FCC to issue a regulatory presubscription for our rates, the long distance companies are asking the Commission to become the Dr. Kervorkian of future network investment. We cannot give the long distance companies billions of dollars to pocket while continuing to invest in the modern technology that our customers want. Local telephone companies have already reduced their rates to long distance companies by $9 billion over the last six years. Instead of passing those reductions on to their customers, long distance companies have kept the money and continued to raise rates." In their comments, Bell Atlantic and NYNEX urged the FCC to: - Recognize that the Commission has in place a price cap system that automatically reduces real access prices. - Establish a new market-based access rate structure that significantly lowers per minute access prices, while establishing a new rate structure based on flat-rated charges. - Give local exchange carriers the flexibility to respond to the competitive marketplace by offering new services and pricing arrangements without regulatory constraints when barriers to entry in the local telephone market are eliminated. - Allow future access price reductions in response to competition while ensuring that consumers will not pay for these access charge reductions. - Reject the long distance carriers' efforts to use regulation to determine lower rates. That approach is contrary to the vision of the Telecommunications Act of 1996, and would destroy the incentive for future network development. Bell Atlantic Corp. (NYSE: BEL) is at the forefront of the new communications, entertainment and information industry. In the mid-Atlantic region, the company is the premier provider of local telecommunications and advanced services. Globally, it is one of the largest investors in the high-growth wireless communication marketplace. Bell Atlantic also owns a substantial interest in Telecom Corporation of New Zealand and is actively developing high-growth national and international business opportunities in all phases of the industry. NYNEX is a global communications and media corporation that provides a full range of services in the northeastern United States and high-growth markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland, Slovakia and the Czech Republic. The corporation is a leader in telecommunications, wireless communications, directory publishing and video entertainment and information services. NYNEX is also managing sponsor of FLAG -- Fiberoptic Link Around the Globe -- the world's longest undersea fiber optic communications cable. Copies of the Joint Comments of Bell Atlantic and NYNEX are available by calling Jamie DePeau at 202-336-7825 or at Bell Atlantic's News Center on the World Wide Web (http://www.ba.com). go to news archive