August 14, 1997

Commissioner Susan Ness

on Bell Atlantic/NYNEX Merger

This Commission is fully committed to the goal of competition in the telecommunications marketplace. Competition is the goal established by Congress. Competition is the proven mechanism for ensuring that consumers enjoy better service, more choices, and lower prices.

I have repeatedly expressed my belief that we will know local phone competition is here when we see the regional Bell companies invading each others' territories and competing vigorously, head to head and toe to toe. Unfortunately, that day remains in the future.

Instead, we are now allowing two more potential competitors to combine, instead of compete. But we nonetheless find the merger to serve the public interest. This is not as anomalous as it sounds.

I am voting to approve this consolidation only because I believe that the conditions we have placed on the merger are ones that, as applied across the combined region, more than compensate for the loss of the potential competition between Bell Atlantic and NYNEX. While we have eliminated the potential that Bell Atlantic will challenge NYNEX in the New York City area, we have obtained conditions that will facilitate other competitive entry from Maine to West Virginia. The net effect, as a result, should be more competition, not less.