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February 18, 1999 Competition in the telecommunications industry has a tremendous potential benefit to consumers. As companies propose mergers we hope that there will be a reaffirmation to protect consumers by assuring universal service; that is, service to all consumers not only for basic phone, but for Internet access and access to new technologies as they develop. Companies should commit to serving the interests of consumers by addressing and helping to prevent fraud in telecommunications and on the Internet. Over the past several years, the National Consumers League has taken an active role in educating the public about telephone-related fraud and advocating for appropriate consumer protections. Companies considering mergers and acquisitions should have strong policies on cramming, slamming, privacy, fraud prevention, and other consumer protections. Corporations who wish to play a leading role in the marketplace also have a responsibility to consider the impact such mergers have on workers. When appropriate, workers should be retrained to assume responsibilities that involve the use of new technology. Mergers should help spur new high paying jobs through expanded markets. In our economy, where growth is largely driven by consumer demand, a healthy job market goes hand-in-hand with a healthy consumer sector. Consumers need the purchasing power provided by good-paying jobs to make good choices among the vast array of products and services in the marketplace. Merged companies should have a strong incentive to retain their skilled workforce as they expand to offer new services and enter new markets. In addition, ensuring that the Internet remains open and competitive as broadband capabilities are deployed is a consumer concern. In a changing marketplace, consumers will gain access to the Internet through phone lines as well as high-speed cable networks. Rather than a multitude of Internet service providers, consumers could be faced with limited access if companies are able to recreate monopolies for access. As broadband services emerge, it is critical to the public interest that the last mile of infrastructure that is used to access Internet services develops in an open, accessible, and competitive manner. If it is not, consumers will suffer and the public interest benefits of the delicate balance in today's market competition will be lost. As companies grow and expand into new markets, we believe that their responsibility is to help protect consumer interests, not limit choice. Both consumers and legitimate marketers must be protected against the unfair and abusive practices of companies that are not playing fair in the new telecommunications marketplace. Those companies who wish to play a leading competitive role must also show leadership in helping fight for consumers rights and against those who will violate those rights. |