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News Releases
New Edge Networks Urges Structural Split of Bell Atlantic
VANCOUVER, Wash. - (Dec. 28, 1999) - New Edge Networks today became the latest competitive local exchange carrier urging the structural separation of Bell Atlantic's wholesale and retail operations in Massachusetts.
The fourth leading national wholesale player in the DSL provider market, New Edge Networks joins a coalition of almost a dozen new communications service providers led by NEXTLINK Communications, Inc., supporting a structural split of Bell Atlantic for achieving non discrimination in provisioning competitive local telecommunications services in Massachusetts. NEXTLINK filed its proposal with the Massachusetts Department of Telecommunications and Energy (DTE) on Dec. 17.
Structural separation means splitting up the local telephone monopoly into two separate companies: a retail company that sells services to end user customers and a wholesale company that owns the lines and wires and sells access to all communications providers on equal terms and conditions. Today, local telephone monopolies do both facing unavoidable conflicts of interest and leaving competitors at a fundamental disadvantage.
New Edge Networks is urging DTE at a minimum to withhold support of Bell Atlantic's request to provide long distance service in Massachusetts until the company eliminates documented practices of thwarting local competition in the state. In urging structural separation, New Edge Networks and others also caution that regulatory oversight for development of a competitive market place will be more difficult and costly if Bell Atlantic remains the dominant provider of local telecommunications services.
"Incumbent phone companies across the nation are consciously engaging in tactics of delay, outrageous wholesale pricing, regulatory and legal gamesmanship with the intent of maintaining their monopoly grip over telecommunications in the local markets," said Susan McAdams, vice president of government and regulatory affairs for New Edge Networks.
"The underlying problem in enabling competition against incumbent telephone companies is that the incentives are wrong. The phone companies have every incentive to impede competitors by refusing to provide adequate, timely and financially viable interconnection services so long as wholesale and retail operations remain integrated. Structural separation is the real solution," McAdams said.
"Unfortunately, consumers pay the ultimate price by not having the benefit of choice for new service offerings, especially outside the major metropolitan areas."
About New Edge Networks
Based in Vancouver, Wash., New Edge Networks is the fourth leading national wholesale player in the DSL provider market. The privately held company is focusing on building its network in under served smaller cities and rural areas and has filed for certification in all 50 states. Last July, the company completed its first round of equity funding from three top-tier venture capital firms including Accel Partners, Palo Alto, Calif., Greylock, Boston, Mass., and Crosspoint Venture Partners, Woodside, Calif. New Edge Networks initiated DSL service in November 1999. The company's Web site address is www.newedgenetworks.com.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.